Twitter finally encrypted Thursday its draft IPO , which in the most optimistic scenario would allow him to raise $ 1.61 billion and would value totaling 11 billion . In an updated version of the project published on the website of the U.S. stock gendarme (SEC), Twitter announced that it intends to market 70 million shares for a price range between 17 and 20 dollars .
As usual in this kind of operation, the final price will be set on the eve of the operation itself, after a roadshow ("roadshow") to potential investors.
Between 9.3 and 11.1 billion valuation
Twitter still does not say what date he plans to take his first steps on the market, but the Wall Street Journal talks about the Nov. 7 on the basis of sources familiar with the matter.
Twitter expected if significant demand over-allotment option on 10.5 million additional shares, bringing the total number of ordinary shares outstanding after the operation about 555 million if one includes actions that are not placed on the market. On this basis, it is therefore estimated to total between 9.3 and 11.1 billion dollars, a relatively low level compared to the figures circulating in the media, and sometimes amounted to 15 or 20 billion.
For Michael Pachter, "the company intends to create a lot of demand, and they intentionally keep the volume low to ensure that the demand will exceed supply. This should happen at that price."
"This initial range leaves the possibility of raising the eventual IPO price, which would reinforce the idea that the market demand is high, and still leaves room for a nice progression on the first day of trading," Judge as Lou Kerner, founder of Internet investment fund Social Fund.
1.2 to 1.6 billion raised
The IPO of Twitter is one of the most anticipated of the year. The company plans to list its shares, which carry the symbol "TWTR" on another marketplace that Facebook , the New York Stock Exchange. He also chose a more modest entry into Exchange as his rival where Facebook had raised $ 16 billion last year, Twitter does not provide, on the basis of figures Thursday between 1.19 billion revenue if the lowest price is accepted, and 1.61 billion if it is fixed in the upper range and the over-allotment option is exercised.
Twitter says in its paper stock that will use the proceeds to fund its operating and investment activities, but said that the operation is primarily intended to "increase our capitalization and financial flexibility, create a public market for our securities and give us access to equity markets. "
Even if the two networks are often opposed, Twitter has not at all the same scale as Facebook. He claimed 231.7 million users in late September, against 1.15 billion for its rival. Twitter is also deficient , with a net loss of $ 134 million in the first nine months of 2013, despite a strong growth in revenue, more than doubled over the same period to 422 million.
His ability to become profitable is uncertain, although it has increased in recent months efforts to increase its advertising revenue, inter alia with the offers for the TV networks . Twitter has also announced earlier Thursday recruitment activities responsible for digital television group NBC News, Vivian Schiller, to handle its media partnerships.
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