A preview of Twitter’s IPO
Twitter’s IPO is tomorrow, and details about its pricing are dribbling out. In fact, sources told Reuters the IPO could price at the high-end of projections, possibly up to $28 per share:
While final pricing is still being hashed out between Twitter management and its underwriters, sources said the price was likely to be above the $25 top end of the range announced on Monday. A price at that level would value the company at more than $14 billion.
Here’s a look at Twitter’s valuation in chart form:
Here’s more from Reuters:
The new pricing would value the company at up to $13.6 billion, or about 12.5 to 13.6 times forecast 2014 revenue of $1 billion, according to eMarketer. Both Facebook and LinkedIn Corp trade at about 12 times forecast 2014 revenue.
Here’s a breakdown of some of the main components of Twitter’s business:
Yesterday, Olivia Oran and Gerry Shih reported that demand among investors for Twitter shares was stronger than expected. Or as one source put it: Twitter’s IPO is now “massively” oversubscribed, and several equity analysts set one-year price targets of up to $52.