In its IPO related regulatory filing the last Thursday, Twitter set a preliminary price range of $17 to $20 per share. According to some sources the company raised the maximum size of its offering to $1.4 billion which is up from its previous $1 billion. The company is mulling a plan to sell about 70 million of its shares in the IPO.
Additionally, Twitter has about 545 million shares outstanding which according to market observers the company would be valued as high as $10.9 billion which is quite higher than what was reported and estimated earlier. Thus, Twitter is all set for a fantastic beginning in the stock market amidst the great interest shown by investors.
Twitter has great Growth Potential
The company hopes to raise about $1.5 billion selling 70 to 80.5 million shares at $17 to $20 each in an IPO. This is not just based on speculation but on the growth potential and future profitability of its micro-blogging service. Moreover, as the company is all set to hit the road in search of investors for its initial public offering, it is being valued anywhere between $10 billion and $13 billion.
U.S. Stocks Rise
On a better trading day, the S&P 500 rose 0.4 percent to 1,759.77 at 4 p.m. in New York. Similarly, there was a better performance in indexes as the Nasdaq 100 Index climbed 0.6 percent to 3,383.83. On the other hand, the Dow Jones Industrial Average added 61.07 points, or 0.4 percent, to 15,570.28.
Friday’s trade show that about 6 billion shares changed hands on U.S. exchanges and U.S. stocks rose greatly. Some star performers were Amazon.com Inc. and Microsoft Corp. which sent the Standard & Poor’s 500 Index to higher levels. Amazon.com and Microsoft Corp sales beat estimates and fared better than expected.
Reportedly, Amazon.com’s sales increased by 9.4 percent. On the other hand, Microsoft shares were high flying as they jumped 6 percent amidst the news that the company has obtained increased corporate software demand which is compensating the weak consumer personal-computer purchases.
Similarly, United Parcel Service Inc. (UPS) fared better and added 1.2 percent to a record $95.61. Alexion Pharmaceuticals Inc. (ALXN) was another star performer in Friday’s trading as its shares climbed 7.3 percent to a record $125.17. The day also brought in good news for National Oilwell Varco Inc. which rose 4.5 percent to $82.72.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org