Seeking Alpha

Twitter IPO much in demand

  • Twitter (TWTR) has reportedly attracted more than enough interest for its upcoming IPO to be oversubscribed
  • The demand comes even though Twitter's management, in the company's roadshow, have apparently refrained from outlining how it plans to break even.
  • Twitter intends to sell 70M shares at a price range of $17-20 each, although it could end up selling the stock for more than that and/or increase the number of shares it will offer.
  • The company is due to price the shares on Wednesday and start trading on Thursday.
  • Twitter intends to use the cash to go on a spending spree.
Comments (2)
  • FalSal
    , contributor
    Comments (2) | Send Message
     
    In 2012 before FB IPO Revenue were around $5B Book Value around $12.7B IPO price was $38 That is a multiplier or 18 and 7 to both revenue and book value respectively.

     

    If for Twitter IPO price to be priced at $20 based on revenue and book value as of Q3 The multiplier will be 18 & 22 respectively.

     

    Based on the above facts the short term could be tricky
    4 Nov 2013, 06:46 AM Reply Like
  • al roman
    , contributor
    Comments (9740) | Send Message
     
    TWTR is cranking,right now !
    4 Nov 2013, 06:49 AM Reply Like
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