Twitter to reveal IPO details this week – targets US Thanksgiving for IPO

30 Sep 2013

Social network Twitter is understood to have submitted documents to the US Securities and Exchange Commission (SEC) and is to reveal flotation plans for the US Thanksgiving holiday this week.

The move comes just weeks after Twitter announced it submitted a S-1 filing to the SEC for an initial public offering (IPO).

Goldman Sachs is the lead underwriter in the planned sale of stock.

Twitter has achieved a valuation of US$9bn, based on sale of employee stock to BlackRock Inc.

In March, eMarketer raised its forecast for advertising spending on Twitter for 2013 and 2014, estimating the company will earn US$582.8m in global ad revenue in 2013 before nearing US$1bn next year.

The company was able to make use of the American Jobs Act to file its recent S-1 form in secret.

However, according to Quartz, the filing may have been made as far back as July to avoid any press leaks.

Citing sources, the report said the goal is for Twitter to begin trading on the New York Stock Exchange before Thanksgiving at the end of November.

The S-1 will reveal how much capital Twitter intends to raise, how it derives its revenues, and how much each share is likely to cost.

Current price projections suggests Twitter shares will sell for US$28 to US$30 a share, which would value the company at between US$15bn and US$16bn.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years