Goldman Sachs to Lead $1 Billion Twitter IPO
NEW YORK ( TheStreet) -- Twitter, the popular micro-blogging site, has released its filing for an initial public offering of $1 billion in stock and listed Goldman Sachs
Morgan Stanley and JPMorgan
Twitter's $1 billion share offering is a placeholder used to calculate fees. The San Francisco company hasn't yet disclosed the pricing of its offering or an exchange where the company's shares will trade. Twitter's ticker will be "TWTR."
The pending share sale will be highly watched on Wall Street and in Silicon Valley, even if it is far smaller than Facebook's
In September, Twitter took to its own network to announce it had filed papers for an IPO, after months of speculation by media, Wall Street and investors.
"We've confidentially submitted an S-1 to the SEC for a planned IPO. This Tweet does not constitute an offer of any securities for sale," Twitter said in a late afternoon tweet on September 12.
Unlike a traditional filing disclosed to public investors, Twitter chose to file its papers confidentially with the Securities and Exchange Commission . The company is then required to disclose its S-1 filing to the public at least three weeks before it intends to sell shares to the public. Companies with revenue less than $1 billion in their most recent fiscal year can submit S-1 IPO filings confidentially with the Securities and Exchange Commission under the Jumpstart Our Business Startups, or JOBS Act.
Twitter may have filed confidentially with the SEC as a means to gain feedback on its financial reporting without having to make a series of public amendments, Beth Saunders, Americas chairman of FTI Consulting's Strategic Communications practice, said in a September interview.
After disclosing IPO paperwork, firms usually travel to investing centers across the country and even internationally in a road-show to explain their business to investors. As with Facebook's road-show, investors are likely to be focused on Twitter's financial forecasts and its strategy to build advertising revenue, and especially from mobile devices.
Twitter reported $317 million in 2012 revenue and $253.7 million in sales six-months through this year, according to its IPO filing. While Twitter has yet to report net income, the company did say in the filing that it earned over $21 million in adjusted earnings before interest, taxes, depreciation and amortization.
The company now has over 200 million monthly active users and over 500 million tweets are sent on its network each day.