Twitter Inc. will file its initial public offering (IPO) later this week according to people familiar with the move.
Based on current estimates Twitter will become a public company in late October or early December.
Twitter announced earlier in the month that it was planning to go public. In a very public post the company announced its “confidential filing” with regulators.
After the company issues a public filing it will have 21 days to propose share pricing and a launch date for the IPO.
According to one insider the company is waiting for Congress to make a decision over the extension of the US debt limit which could dampen investor enthusiasm.
Twitter is expected to offer a smaller IPO than Facebook Inc’s $16 billion sale in 2012. The social network still claims less than $1 billion in revenue while Facebook had $3.7 billion in sales in 2011, the year before its IPO.
Private share sales have valued Twitter at $10 billion, a valuation 10 times less than Facebook’s initial sale.
Current Twitter IPO pricing is thought to be in the range of $28 to $30 a share. Based on that pricing Twitter would carry a $15 billion to $16 billion market valuation.
Goldman Sachs Group Inc. will spearhead Twitter’s IPO with help from J.P. Morgan Chase Co. and Morgan Stanley.
Do you think Twitter’s initial public offering (IPO) will be a big success or a big dud?