Wednesday, November 6, 2013
Twitter rises by 20 % the price range of its IPO
By Brainy Williamson General
The underwriters of Twitter have decided to raise the price range up to 23-25 cents per share , compared with 17 to 20 dollars. (See : Twitter will valued at up to U.S. $ 10,900 million )
At the previous price , the company was below the value that had been given to his actions last August, $ 20.62.
(Thus, this increase represents a 20% increase in the price , which would value the company between 12,500 and 13,600 million. Access the Twitter statement with the SEC ) . But to top it off , Bloomberg has reported that the company has said that the final price , which will be announced on Wednesday, could be above this band.
The company intends to sell 70 million shares , about 13 % of the total capital of the company. With this operation, and after improving the price range , Twitter , would pocket between 1,600 and 1,750 million.
Also, go to the underwriters Twitter one green shoe of 10.5 million shares, about 2 % of total capital.
This improvement in the price that occurs after Morningstar claimed on Friday that the U.S. $ 17-20 price was too low for this company.
In fact , Morningstar analysts claimed that it should be even higher than the last known price . Specifically, these experts said it was below 40% . From their perspective, the actions of Twitter should be worth $26 per share.
But the analyst goes further and says that at best their scenarios and a very bullish outlook , the shares could reach up to 170% . By contrast , in the more bearish scenario could fall to $ 15 , if sold to another company. (See : Twitter with Twitter)
Will have to see what their debut , to be held in the NYSE , after rejecting the company the option of trading on the Nasdaq. Twitter also already assigned ticker that will TWTR .
But not all experts think alike. According to an AP- CNBC poll at least half of what they call active investors ( those who have adjusted their portfolio positions in the last year ) , do not consider it a good invrseión Twitter . This idea is much stronger among those with higher incomes .
In principle, the Wednesday we will know the final price of the transaction and Thursday will be the stock market debut .