Twitter has
confirmed it will list on the stock market.
“We've
confidentially submitted an S-1 to the SEC for a planned IPO,” the company said
on its official Twitter feed. “This Tweet does not constitute an offer of any
securities for sale.”
The company is using the Jumpstart Our Business Startups Act to
keep its SEC filings private. The law took effect last year and aims to
encourage more companies to raise capital publicly. Companies with less than $1
billion in annual revenues can keep their securities filings confidential until
three weeks before the launch of an investor roadshow. The timing of the
announcement suggests Twitter could list before the end of 2013.
On the day before the Initial Public Offering (IPO) was announced, Twitter shares were
priced on the private market at $26 each for large blocks and $28 for small
lots, giving the company a valuation of $13.7-14.4 billion, one investor, who
owns Twitter stock..
The investor said it was ‘absolutely
clear’ that Twitter had a working revenue model and potential investors would
be able to see a point in the future where it would become profitable.
No comments:
Post a Comment