Twitter Surges in Trading Debut
After $1.82 Billion Share Sale
By Sarah Frier & Lee Spears -
Nov 7, 2013 2:09 PM PT
Twitter Inc. jumped 73
percent in its trading debut, as investors paid a premium for its promises of
fast growth.
The stock rose to $44.90 at the
close in New York from the initial public offering price of $26, delivering the
biggest one-day pop for an IPO that raised more than $1 billion since
Alibaba.com Ltd. debuted in 2007, according to data compiled by Bloomberg.
Twitter sold 70 million shares, raising $1.82 billion.
Enlarge image Twitter Surges in
Trading Debut After $1.82 Billion Share Sale
The microblogging website picked a
price that valued it higher than Facebook Inc. and still drew more interest
than anticipated. The San Francisco-based company, which is unprofitable and
has one-fifth as many users as Facebook, is benefiting from investors’ thirst
for companies that will grow quickly in expanding markets like mobile
advertising.
“The company did everything to
secure the most cash for itself while leaving some money for the IPO buyers,”
said Josef Schuster, the founder of IPOX Schuster LLC, a Chicago-based manager of
about $1.9 billion. “You need a pop at the opening to leave a good taste with
everyone. They did a pretty good job managing the whole situation.”
At the current price, Twitter is
valued at $24.9 billion, or 22 times estimated 2014 sales of $1.14 billion,
according to analyst projections compiled by Bloomberg. That compares with 11.2
times that Facebook traded at today, and price-to-sales ratio of 11.7 for
LinkedIn Corp.
Twitter Inc.
Ali
Rowghani is the COO for Twitter Inc.,
and was the CFO & SVP for Pixar.
Note: George Lucas was a
co-founder for Pixar, and married to
Mellody L. Hobson.
Mellody L. Hobson
is married to George Lucas, a
trustee at the Sundance Institute,
and a member of the Commercial Club of
Chicago.
Foundation
to Promote Open Society was a funder for the Sundance Institute, the Aspen Institute (think tank), the International Rescue Committee, and the
Climate Reality Project.
George
Soros is the chairman for the Foundation
to Promote Open Society.
R.
Eden Martin is the president of the Commercial
Club of Chicago, and counsel at Sidley
Austin LLP.
Michelle
Obama was a lawyer at Sidley Austin
LLP.
Barack
Obama was an intern at Sidley Austin
LLP.
James S.
Crown is a member of the Commercial Club of Chicago, and a trustee
at the Aspen Institute (think tank).
Lester Crown
is a member of the Commercial Club of Chicago, and was a lifetime
trustee at the Aspen Institute (think tank).
Michael K. Powell
is a trustee at the Aspen Institute (think tank), and Colin L. Powell’s son.
Colin
L. Powell is Michael K. Powell’s
father, an overseer at the International
Rescue Committee, and a strategic limited partner for Kleiner Perkins Caufield & Byers.
Albert
A. Gore Jr. is the chairman for the Climate
Reality Project, and a partner at Kleiner
Perkins Caufield & Byers.
Michael Abbott is
a partner at Kleiner Perkins Caufield
& Byers, and was a VP for Twitter
Inc.
Kleiner
Perkins Caufield & Byers was an investor in Twitter Inc.
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