PRESS TRUST OF INDIA
New York, 25 October
Micro-blogging site Twitter has said that its much-anticipated initial public offer, which is scheduled to happen next month, could raise as much as $1.6 billion. The US-based firm had earlier said its IPO could raise $1 billion.
In a regulatory filing with the US Securities and Exchange Commission (SEC), Twitter said it will sell 70 million shares in the range of $17-20 apiece and also has the option to sell an additional 10.5 million shares.
“It is currently estimated that the IPO price per share will be between $17 and $20. Our common stock has been approved for listing on the New York Stock Exchange under the symbol ‘TWTR’," the filing said yesterday.
The IPO will value the company at $10.9 billion.
In the filing, the social media major said: “The common stock to be outstanding after this offering will be 544,696,816 shares.”
Earlier this month, the San Francisco-based company, founded in 2006, had said in a S-1 filing with the US SEC that it will come out with an IPO.
Twitter earlier had said it intends to use the proceeds from the IPO for general corporate purposes, including working capital, operating expenses and capital expenditures.
“We anticipate making capital expenditures in 2013 of approximately $225 million to $275 million, and we may use a portion of the net proceeds to fund our anticipated capital expenditures,” it had said.
For the six months ended 30 June 2012 to the six months ended 30 June 2013, Twitter revenues rose by 107 per cent to $253.6 million, while net loss increased by 41 per cent to $69.3 million.
It had generated advertisement revenues of 85 per cent and 87 per cent as on 30 June 2012 and the six months ended 30 June 2013, respectively.
It also said: “Since our inception, we have incurred significant operating losses and, as of 30 June 2013, we had an accumulated deficit of $418.6 million."
“Although our revenue has grown rapidly, increasing from $28.3 million in 2010 to $316.9 million in 2012, we expect that our revenue growth rate will slow in the future as a result of a variety of factors, including the gradual slowdown in the growth rate of our user base.”