Twitter shares surge following IPO

Twitter shares surge following IPO

08 NOV 2013

Twitter shares rose 73 per cent in the first day of trading on the New York Stock Exchange, giving the company a market value of $25 billion.

The stock closed at $44.90 per share, slightly lower than the peak of $50, but significantly higher than the opening price of $26. The company offered 70 million shares, 13 per cent of the company’s common shares.

Twitter could potentially raise as much as $2.1 billion, making it the second-largest internet IPO in the US after Facebook’s $16 billion debut in 2012 and ahead of Google in 2004.

In its IPO filing in October the company said it planned to raise $1 billion from the public offering, despite recurring losses. In the first half of 2013, the company made a net loss of $69 million despite generating $254 million in revenue.

The filing also emphasised the importance of mobile revenue for Twitter’s future prospects: “Mobile has become the primary driver of our business,” the company said.

In the three months to end-June 2013, over 65 per cent of its advertising revenue was generated from mobile devices, while 75 per cent of its average monthly active users accessed the service from a handset or tablet. And these proportions are expected to grow in the future, it said.

With 230 million users, Twitter is seen by many as a vital online tool with huge potential as a global advertising platform. However, Twitter previously cited its dependence on advertising revenue as one of the risk factors for potential investors.

Author

Tim Ferguson

Tim joined Mobile World Live in August 2011 and works across all channels, with a particular focus on apps. He came to the GSMA with five years of tech journalism experience, having started his career as a reporter... More

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