Twitter Poised to Begin Trading On New York Stock Exchange
Source: Bloomberg
Twitter Inc. (TWTR:US) is poised to climb in trading in New York today after raising $1.82 billion in its initial public offering, seizing on investor demand to price at a more expensive valuation than rival Facebook Inc. (FB:US)
Indications based on supply and demand on the New York Stock Exchange showed Twitter may open between $42 and $46, after pricing the IPO at $26, according to data sent to Bloomberg. The range is preliminary based on bids to buy and offers to sell and could change before the first official trade. The shares could begin trading today by 10:15 a.m., Duncan Niederauer, chief executive of NYSE Euronext said on CNBC earlier today, describing that as his “best guess.”
Twitter’s IPO price values the microblogging service at 12.4 times estimated 2014 sales of $1.14 billion, according to analyst projections (TWTR:US) compiled by Bloomberg. That’s higher than the 11.6 times that Facebook was trading at yesterday and similar to LinkedIn Corp.’s multiple of 12.2 times sales.
The pricing puts the onus on Twitter to deliver on its promises of fast growth after earlier pitching shares as low as $17. Chief Executive Officer Dick Costolo has rallied investor interest in Twitter’s rapid sales curve -- with revenue more than doubling annually -- even with no clear path to making a profit.
Read more: http://www.businessweek.com/news/2013-11-07/twitter-ipo-raises-1-dot-82-billion-with-higher-value-than-facebook
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There may be a little volatility today. 
