Twitter Set To Make The Most Anticipated Stock Market Debut Since Facebook


And Twitter appears to have learned a lesson from Facebook's debacle in May 2012, marked by trading glitches, accusations about secret information and a plunge in the share value for months after the IPO.

"The Facebook situation last year was a perfect storm of an overheated private market, a fully priced offering, a massive amount of shares brought to market, all compounded by an historical technical glitch," said Lou Kerner, founder of the Social Internet Fund.

"That confluence of events is not likely to occur again." As of its latest update, Twitter will seek to raise up to USD 1.6 billion -- one tenth the value of the Facebook IPO -- by offering 70 million shares in a range of USD 17 to USD 20.

That is a relatively small chunk of Twitter's capital, and implies a market value between USD 9.3 billion and USD 11.1 billion -- a conservative figure compared with some of the private market trades in Twitter so far.

Analysts say Twitter, unlike Facebook, will not flood the market and that with demand exceeding supply the price will rise.

The early Twitter investors may not get maximum value right away, but could benefit over time from a rise in the share price.

Twitter does have a star quality that is likely to fuel interest, because it is a key platform for celebrities, politicians and journalists.

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Source: PTI