Seeking Alpha

Twitter sets IPO price range of $17-$20, offering 70M shares

  • Twitter (TWTR) has set an IPO price range of $17-$20; that's below the prices reportedly offered for private trades. The price range translates into a valuation range of $9.3B-$10.9B. (S-1)
  • Twitter is looking to raise $1.19B-$1.4B by offering 70M shares. Underwriters have a 10.5M-share overallotment option.
  • It looks as if the company is trying to avoid a repeat of Facebook's IPO by pricing conservatively.
From other sites
Comments (10)
  • The Long Tail of Finance
    , contributor
    Comments (805) | Send Message
     
    Twitter's loss will be my gain. FB was a once-in-a-lifetime NASDAQ screw-up, yet each big social media offering is so worried about having another FB incident (100-year storm).

     

    As regards pricing, FB priced their IPO spot-on, in that it maximized money raised for the firm. Good for them. And if you bot shares at 38 you'd be up right now. So quit your complaining, people.
    24 Oct 2013, 04:35 PM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (6358) | Send Message
     
    regardless of the original price range, the stock will price closer to $25 and open at $30. The problem with FB was the increase in shares that removed all the buyers from the after-IPO trading.
    24 Oct 2013, 04:36 PM Reply Like
  • dpt4
    , contributor
    Comments (46) | Send Message
     
    Have they given an exact date of the IPO?
    24 Oct 2013, 04:46 PM Reply Like
  • Julian Acosta
    , contributor
    Comments (129) | Send Message
     
    Has anyone had experience purchasing shares of the IPO? Is it mostly institutional investors? I imagine it's not easy.
    24 Oct 2013, 04:55 PM Reply Like
  • heloise8
    , contributor
    Comments (439) | Send Message
     
    FB investors did that and lost their shirts as they were paying skyward of 50 for FB before the IPO went public. I bought into FB hype and lost a few bucks. I got another, I mean another CAL (class action lawsuit) in the mail. This time for GOOG. My point, there will be a CAL for FB down the pike coming soon to your mailbox.

     

    I have cashed in on few IPOs. Wait until the equilibrium point then jump in...maybe...that includes Twitter where I had 1K followers at one time, but it is now in limbo as it got too damn clogged up. How is TWTR making money? Ads. Services and ads. I think I will save my money. I've had enough sleepless nights with IPOs for now.

     

    I got a few newbies in my portfolio that I like.
    24 Oct 2013, 05:14 PM Reply Like
  • A-rod
    , contributor
    Comments (8) | Send Message
     
    Twitter has not made any money, yet!
    25 Oct 2013, 10:34 AM Reply Like
  • u01bsb0
    , contributor
    Comments (656) | Send Message
     
    FB shares valued at $127b
    Twitter $10b.

     

    I think Twitter is priced at an absolute bargain.
    24 Oct 2013, 06:57 PM Reply Like
  • Michael Nau
    , contributor
    Comments (972) | Send Message
     
    Or perhaps both are overpriced.
    24 Oct 2013, 10:24 PM Reply Like
  • 4145375
    , contributor
    Comments (3) | Send Message
     
    I purchased FB at 38 offer price sold part at 36 repurchased at 20 and haven't looked back yet. The person looking to get into the the Twitter IPO it is possible to get into the offering if you are a customer of one of the under writers. Good luck - I will be into Twitter also
    24 Oct 2013, 10:03 PM Reply Like
  • J Mintzmyer
    , contributor
    Comments (3738) | Send Message
     
    Unless a company is planning an immediate follow-on offering or has huge shareholders that need a secondary, a 100% gain the first day should also be seen as a huge mistake. A healthy 5-10% increase is a much better outcome since it suggests the company maximized their capital raise.

     

    FB was not as big a deal as all the pundits made it out to be especially considering the volume of shares.
    25 Oct 2013, 09:26 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs