Twitter raises IPO value to US$1.61b
NEW YORK: Twitter raised the value of its initial public offering (IPO) on Thursday to as much as US$1.61 billion (RM5 billion) as the popular messaging service moved a step closer to Wall Street.
The IPO suggests a market value for the social network of between US$9.3 billion and US$11.1 billion - a conservative amount compared to estimates by analysts in recent weeks.
In a regulatory filing, Twitter boosted the IPO amount from an earlier estimate of US$1 billion, saying it would sell 70 million shares in a price range between US$17 and US$20 a share.
Michael Pachter at Wedbush Securities said the pricing range is "well below the recent sales of private shares, which were at US$27 to US$28".
The update filed with the Securities and Exchange Commission said Twitter's underwriters will have an option to sell 10.5 million additional shares if there is enough demand. AFP