Twitter Goes Public With a High Profile IPO
Five years ago, amidst a wave of foreclosures and recession, investors didn’t want any part of an Initial Public Offering (IPO). What a difference half a decade makes. The 33 IPOs in October make it the busiest month since November 2007. Generally, the IPO market is an unofficial bellwether for investor confidence and, finally, investors are getting excited about buying new stocks again, especially when the company’s name is Twitter.
As Twitter prepares to dip its toe into the stock market for the first time on Monday, the initial stock price estimates moved from $23 to $25, up from $17 to $20. If sales are hot, the social media giant should be able to raise more than $2 billion.
Twitter officials recall the much ballyhooed Facebook IPO from last year. Mark Zuckerberg’s baby gained just 23 cents on the first day of trading and went on to lose more than one-fourth of its $38 IPO price over the next four months. Experts now believe Facebook was priced too high, a mistake Twitter is trying to avoid.
Other IPOs this week include the Israeli web design company Wix, energy company Midcoast Energy Partners, and network security firm Barracuda Networks. (Derek Dowell – VNN) (Image: Flickr | TaylaLyell1979)