Twitter is planning to sell 70 million shares at $17 to $20 per share in order to raise about $1.4 billion in its coming IPO. The company updated its S1 filing with the SEC today with the new data.
That would value Twitter at almost $11 billion.
The goal for Twitter through this entire IPO process has been to not pull a Facebook, whose IPO was marred with multiple stumbles and glitches, and as a result only recently surpassed its open day high. Facebook’s approach maximized company proceeds from the IPO but minimized investor goodwill, and it resulted in a below-water share price for almost a year.
Twitter had been rumored to be pursuing an IPO that would value the company at $15 billion. This lower valuation is likely a strategy to ensure an opening day pop in the shares, which can then translate into long-term value growth.
Cofounder Evan Williams, who owns 12 percent of Twitter with 56.9 million shares, would see his share be worth over $1 billion at these prices, while Jack Dorsey’s 23.4 million shares would be worth about $450 million. With only 13 percent of its total shares — 544.7 million — being sold, there’s plenty of the company left for future stock-based compensation for star employees.
Twitter currently has 230 million monthly active users and 100 million daily active users who tweet about 500 million times a day. Seventy-six percent of its monthly active users access the site from a mobile app, and 70 percent of its advertising revenue is generated via mobile.
Twitter will launch on the New York Stock Exchange under the symbol TWTR, likely on Nov. 15.
VentureBeat is studying mobile marketing automation
, and we’ll share the data.