PDA

View Full Version : $14bn Twitter hits NYSE as 'TWTR', trading at $26 per share



ghaza
11-08-2013, 01:39 AM
747
Twitter has priced its shares at $26 (16.17) each, ahead of its first day of trading on the New York Stock Exchange (NYSE).

That is well above the original estimate of between $17 and $20, and higher than the $23-$25 predicted earlier this week.
This puts the company at a value of $14.2 billion (8.8 billion), making it officially the biggest market entry for a technology firm since Facebook's disastrous Nasdaq debut in 2012.
The micro-blogging firm will flog 70 million shares, raising $1.82 billion (1.1 billion) in the process.
However, huge question marks still hang over the company as makes the transition into a public outfit. The biggest of these revolves around Twitter's ability to actually make some money.
Last month, the San Francisco-based company revealed a long history of heavy financial losses, and this year's is set to be the biggest yet. Most worryingly, the company is yet to make a profit, but investors still seem excited by the social network's money-making potential.
In the first six months of 2013, Twitter brought in revenue of $253.6 million (156.8 million) a record for the firm but also suffered all-time high losses of $69.3 million (42.9 million).



Around 85 per cent of Twitter's revenue comes from advertising. In May last year, Facebook the Nasdaq exchange, trading its stocks for $38 per share. However, reports that the firm was struggling to earn cash from mobile advertising coupled with high prices, put long-term investors off making a move.
Technical glitches didn't help either and, after shares dipped, the company took a year to make a full recovery.
The micro-blogging site will trade under the symbol 'TWTR'.