Twitter Inc priced its initial public offering above its expected range to raise more than $1.8 billion, in a sign of strong investor demand for the most highly-anticipated US public float since Facebook Inc. The microblogging network priced 70 million shares at $26, above the expected range of $23 to $25, which had already been raised once before.
The IPO values Twitter at $14.1 billion, with the potential to reach $14.4 billion if underwriters exercise an over-allotment option, as they are widely expected to. Some analysts said they expect shares of Twitter to experience a small pop during the first day of trading.
Twelve-month price targets on the stock range from $29 to $54. David Menlow, president of research firm IPO Financial, said it’s unlikely Twitter will see shares soar initially but a smaller size pop is possible. “I think you could see shares rise 10 percent but there are still a lot of naysayers out there who think the stock is overvalued,” he said.
Twitter’s public float comes amid the strongest market for US IPOs since 2007, as equity markets soared and uncertainty around the US debt ceiling has largely subsided for now.
A number of IPOs have doubled on their first day of trading including Container Store Group, restaurant chain Potbelly Corp and software company Benefitfocus Inc .
