Twitter ups IPO price before going public later this week
(Updates with analyst’s comment in the 3rd paragraph.)
Nov. 4 (Bloomberg) -- Twitter Inc. raised the price of shares in its initial public offering by as much 25 percent, putting it on track to raise $1.75 billion amid brisk demand.
The microblogging site is offering 70 million shares for $23 to $25 each, a regulatory filing today shows, indicating a market value of as much as $13.6 billion. Twitter had earlier proposed selling shares for $17 to $20 apiece.
“This number is still a reasonable and doable valuation, and I don’t think it’s going to turn people off,” said Santosh Rao, an analyst at Greencrest Capital Management LLC. “We’ve seen this before, where companies start off with a low number to get people interested, and then work higher. The demand is there as this is the last of the big three social networks to go public.”
Twitter has attracted more than enough interest to sell all shares in its IPO before bankers started officially taking orders for them, people with knowledge of the matter have said. Chief Executive Officer Dick Costolo has been traveling to major U.S. cities to drum up interest for the stock, and making the case that the unprofitable company needs to spend to improve its advertising products, grow its user base and enhance its infrastructure.