Twitter Inc. has set a price of $26 for the IPO on Wednesday, offering of 70 million shares. The micro-blogging website priced shares lie between the non-binding range announced earlier this week. At $26 a share, Twitter is valued at 14.4 billion.
The social network priced at the top end of the range it set earlier this week, when it said it would price its IPO at $17 to $20 a share from $23 to $25 a share, in a sign of the tremendous investor appetite for the offering.
“A tech IPO like Twitter with no profit is an emotional event, not a fundamental event. You either believe or you don’t,” said Max Wolff, chief economist and strategist at ZT Wealth. “Above $26, I think this thing starts to look a little dicey.”
Twitter’s IPO is set to raise $1.82 billion, the largest IPO by a technology company since Facebook debut last year offering that brought in $16 billion. The company’s shares may begin trading on the Nasdaq Stock Market around 11 a.m. ET on Thursday with the symbol TWTR.
Initially, the price of $26 would be available primarily to large investors such as mutual funds and hedge funds, as well as some of the individual clients of the banks underwriting the deal. Ordinary investors looking to get a piece of Twitter may have to wait until Friday morning.
The co-founder Evan Williams has now become a billionaire on paper, who owns 10.4% of the San Francisco-based company after its market debut with a stake valued at $1.48 billion. Besides, Peter Fenton, the board of director and an early investor in the company, holds a stake worth $789 million while fellow co-founder Jack Dorsey has a $586 million stake, and company CEO Dick Costolo owns a stake worth $192 million.