The San Francisco social media company has raised its
debut price per share from an initial $17 to $20 to between $23 and $25.
The increase doesn't come as a big surprise. Many observers considered the previous pricing to be relatively conservative, given that Twitter's market value was appraised at $20.62 per share in an assessment done by Duff & Phelps Corp. in early August. Twitter's earlier decision to begin the IPO pricing below its recently appraised value was seen as a way to contain expectations while leaving room to raise the target and build more buzz about its stock market debut planned for later this week.
Inside Twitter Headquarters in San Francisco |
With this, Twitter intends to raise between $1.6 billion and $1.8 billion when its stocks starts trading on Thursday.
The number of shares the company intends to sell is 70 million. At the new price, the company will be valued at between $12.8 billion to $13.9 billion.
Twitter co-founder Evan Williams is the company's largest individual shareholder with a 10.4% stake, which would be worth between $1.3 billion to $1.4 billion. CEO Dick Costolo's stake would be worth as much as $191.9 million.
The second largest individual
shareholder is Peter Fenton -- a Twitter board director and an early investor
in the company -- whose stake would be worth as much as $789 million.
Twitter's IPO is being underwritten
by Goldman Sach (GS, Fortune 500) and Morgan Stanley (MS, Fortune 500) and is expected to be priced on
Wednesday.
Regular investors will get their
first chance to buy Twitter the day after, when shares will begin trading on
the New York Stock Exchange under the ticker "TWTR."
Meanwhile
the
company disclosed that International Business Machines
Corp. (IBM) sent a
letter alleging that they infringed on
at least three U.S. patents held by IBM. The patents relate to a networking
technique based on common contacts, a way to show advertisements without
interfering with an interactive site, and using interconnected computers to
reduce Web traffic.
Well,
just log in to your favourite trading platform and start trading.
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