Twitter chief executive Dick Costolo and his top banking advisers Goldman Sachs and Morgan Stanley were today beginning an investor “roadshow” ahead of its $14 billion (£9 billion) stock-market flotation.
The social media giant announced plans to price at $17 to $20 a share, a more conservative valuation than some of the bullish numbers being speculated about in recent weeks.
Twitter plans to fix the price on November 6 and begin trading the next day. It is anxious to avoid Facebook’s experience when its shares were priced high and slid.
City spread-betting firm IG Index last week saw some punters bet that Twitter could be worth $30 billion and it still expects the shares to jump sharply from the planned $14 billion peak valuation.
“Our price at the moment is suggesting $21 billion on the first day of trading,” said David Jones, chief market strategist at IG, whose clients forecast Royal Mail shares would jump.
