Tomahawk, WI 11/07/2013 (BasicsMedia) – Twitter priced its 70 million IPO shares at $26 per unit, giving it a worth of $14.2 billion. In going public, Twitter has sought to avoid the mess which nearly ruined Facebook when it floated its IPO shares last year. It was so disastrous that it has taken FB nearly a year to recover, not to mention the legal onslaught against it by investors. This is why Twitter has decided to trade on the New York Stock Exchange platform instead of NASDAQ which is the platform favored by most tech companies. Twitter has been assigned ticker symbol “TWTR” on NYSE. So Twitter’s full identity on the browsers is “Twitter Inc. (NYSE:TWTR).”

The San Francisco-based company had been cautious about going public especially at this time when its bottom line isn’t very attractive. As the IPO date drew closer, the company reviewed its share prices upward a number of times. Initially it had priced each share between $17 and $20. Later, it move up and priced each share between $23 and $25. And just several hours to IPO, its shares asked for $26 a piece, giving it a valuation of $14.2 billion from its 70 million shares floated. The share prices review was due to escalating demand from investors jostling to own a piece of this social networking company. Facebook too had to revise its share value upward just as its IPO approached and eventually offered its shares at the top price it had set. However, Facebook’s stock crash on NASDAQ rattled investors, and these are memories which Twitter would want to avoid in its initial public floating.

Facebook IPO managers in Twitter’s IPO

Twitter settled with banks which run and nearly bungled Facebook IPO slightly over a year ago – Morgan Stanley and Goldman Sachs. Typically, shares of companies deemed to be favorite for investors jump sharply soon after the offer. The closing price for Twitter has been put between around $45 and $46 per unit as investors are expected to up their bids for the stock given the importance that has been attached to the IPO.

Concerns over Twitter profits

Twitter is going public at a time when it is in losses. The company’s losses have widened in its recent quarter Q3 ending Sept. to $64.6 million. In the same quarter last year, the social networking company made a loss of $21.6 million. However, it was able to double its revenue in the three months quarter ending Sept. 30’13. The noted surge in revenue in the most recently announced quarter was helped by increased access to Twitter’s services on mobile platform. As more people take up smartphones, social media companies have been enjoying subscriber increase and improved revenue.

While Twitter celebrates its increasing revenue, it is likely to take a little longer before it can start reporting in black. With its losses having more than doubled in the latest quarter, perhaps nice things might start showing up in 2015 onwards. The company has the challenge of increasing its subscriber base and retaining the number that it already has, if it is to avoid the shock of user-exit as is often the case with social networking companies already public.

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