A preview of Twitter’s IPO

November 6, 2013

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.

 

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