Twitter floats on New York Stock Exchange

7 November 2013

Twitter debuted on the New York Stock Exchange today with shares priced at $26 (£16) each, above the $23 to $26 range announced on Monday.

This values Twitter at more than $18 billion in total, and the 70 million shares floated today have made this the biggest technology initial public offering (IPO) since Facebook's float in May 2012.

IG predicts that the share price will hit $43.60 by the end of trading today.

Rebecca O'Keeffe, head of investment at Interactive Investor, comments: "Twitter will be hoping to avoid a repeat of the price fall that accompanied Facebook's IPO.

"Interest remains high and plenty of investors are expected to buy the stock, though questions remain as to whether future revenue can justify the current valuation and whether investors are making an emotional purchase rather than a calculated investment."

In the third quarter of 2013, Twitter made a loss of $64.6 million, almost triple the $21.6 million loss made in the same quarter in 2012.

Twitter shares will trade on the NYSE rather than the Nasdaq, favoured by most technology companies, in an attempt to avoid the delays and problems experienced by Facebook during its IPO.

This story was written by our sister website Interactive Investor

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