The US social network Twitter took on Thursday 7th November one of the biggest initial public offerings of all time for the U.S. Internet company. Its shares soared more than 70 percent after they debuted on the New York Stock Exchange.
Launched at $26 – a higher level than expected – the “TWTR” action reached $44.90 on Thursday evening.
Twitter’s introduction on markets was the most expected in the US since Facebook’s in May 2012, which had experienced many technical issues.
Twitter on the other hand seems to be safe.
It’s interesting to note that the “bird enterprise” chose the New York Stock Exchange (NYSE) for its first flights, in opposition with Facebook, who chose the Nasdaq.
The company also decided not to entrust its case to Morgan Stanley, which had been accused of artificially boosting Facebook’s shares during its few successful introduction (too expensive, bugs trading on Nasdaq), which was followed by a long fall. Here, Goldman Sachs is the one in charge of the Twitter case.
A total of 70 million shares were placed on the market Thursday, up to $1.82 billion. This amount will rise to $2.1 billion in case of exercise of an overallotment option on 10.5 million additional shares.
This is far from the $16 billion raised by Facebook, which holds the record for the largest initial technological exchange in the United States.
But Twitter is set approximately equal to the Internet giant Google, which points so far in second with $1.92 billion collected in August 2004, according to data from research firm Dealogic.
Some analysts have warned that the price of Twitter could be very volatile in the coming days, and estimates are already very different.
We’ll see the next results after the weekend.
Marine Vanthournout, IEJ 3G1