Twitter amended its S-1 filing document for the third time yesterday. This time the company offered share pricing and placed a more precise value on its IPO: up to $1.4 billion. Twitter said that shares would be tentatively priced at between $17 and $20:
Prior to this offering, there has been no public market for the common stock. It is currently estimated that the initial public offering price per share will be between $17.00 and $20.00. Our common stock has been approved for listing on the New York Stock Exchange under the symbol “TWTR.”
Initially Twitter will sell 70 million shares (with a potential 10.5 million more available if demand exists). It’s possible, after the company’s “road show,” that the offering price could rise. However, as many people have pointed out, Twitter will try and keep the price from becoming inflated to avoid the mistakes and criticisms of the Facebook IPO, whose pricing was adjusted upward at the last minute.
The last S-1 amendment updated Twitter revenues and indicated that Twitter had earned roughly $168 million in the third quarter of this year.
For the first nine months of 2013 Twitter generated revenues of $422.2 million on a loss of roughly $126 million. That’s put the company on pace to easily clear $500 million in revenue this year.
Twitter also said, remarkably, that more than 70 percent of ad revenue is coming from mobile.