Twitter will offer 70 million shares in its initial public offering, and will price them at $17-$20 per share, according to an amended S-1 filing. Twitter’s IPO pricing range was rumored to drop today, several weeks after it announced plans to go public.
The $20 pricing indicates that Twitter could raise as much as $1.4 billion with this IPO or $1.6 billion, including the over-allotment option — which accounts for around a 13 percent stake in the company overall. Twitter notes that underwriters have an option to purchase 10,500,000 more shares if the IPO is exceeded at the IPO price less discount.
“Prior to this offering, there has been no public market for the common stock. It is currently estimated that the initial public offering price per share will be between $17.00 and $20.00,” the amendment reads. “Our common stock has been approved for listing on the New York Stock Exchange under the symbol “TWTR”.
At the maximum $20 price per share, Twitter would have a valuation of close to $11 billion, which is lower than the close to $15 billion that had been rumored. This could set the stock up for a springy landing when it hits early next month. That could help Twitter avoid the public perception issue that Facebook faced when its high-priced shares flopped on initial offering.
Several of the company’s directors and executives are sharing stock. Chairman Jack Dorsey is selling roughly .6 percent of the company and will own 4.3 percent after the offering — making his share worth around $434 million. Co-founder Evan Williams is selling 1.6 percent of the company and will own 10.4 percent after the offering. Williams will be worth just over $1 billion if the shares go at a median price of $18.50. CEO Dick Costolo will own 1.4 percent of the company after IPO.
Twitter’s road show begins tomorrow and will wrap up in two weeks, after which it will set an official price.
How about it, are you going to buy?