Twitter raises IPO price range by 25%

Move puts it on course to secure valuation of over $17 billion at its stock market debut

Twitter sharply increased the price range of its initial public offering by 25 per cent yesterday in response to huge investor demand, putting it on course to secure a valuation of over $17 billion at its stock market debut later this week.

Shares in the microblogging network will now be offered for between $23 and $25, giving the company a valuation of up $17.4 billion including restricted stock units and options. It will be the largest technology IPO since Facebook’s last year and is expected to lead to a new wave of listings.

If Twitter achieves the top end of the valuation, it would increase the size of the offering to $2 billion. It is selling up to 80.5m shares or about 13 per cent of the company.

Google raised $1.9 billion when it floated in 2004, giving the search company a valuation of $23 billion. Unlike Twitter, Google had been profitable for five years before its listing and was generating almost $1 billion in annual revenues. Adjusted for inflation, the Google stock market debut would have been slightly larger.

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A person familiar with the IPO process said the offering was oversubscribed. – Copyright The Financial Times Limited 2013