Twitter on Wednesday afternoon sent out a single tweet that showcases the company’s hope for the future. Officials at the micro-blogging service announced that it will start its initial public offering at $26 per share. Twitter will sell 70 million of its 545 million outstanding shares. The company also has the option to release 10.5 million shares on the first day of sale. Should pricing increase rapidly those extra shares will likely be offered.
Based on the $1.82 billion in currently offered shares Twitter is valuating itself at a fully-diluted $18.3 billion value. The dilution accounts for outstanding restricted stock units and options for employees, which would put Twitter’s total shares at 705 million. If we use only the 545 million available shares figure the company is valued at $14.16 billion.]
Twitter officials released their S-1 form to the public in October and initially planned for a $17-$20 price per share. Some analysts have questioned the high stock valuation while others believe shares could be trading at $28 by the end of the day.
In comparison, Facebook and its 1 billion+ users drew in a $38 per share and $104 billion last year. Facebook raised $16 billion during its IPO, more than the entire valuation of Twitter with all shares combined, minus employee options and outstanding restricted stock.
We just priced our IPO. pic.twitter.com/NWXaO4Myq0
— Twitter (@twitter) November 6, 2013