Wednesday, November 6, 2013

Twitter rises by 20 % the price range of its IPO

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The social network raises the price range of its IPO to the good reception of the transaction between investors.

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 .


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