Reuters - Video

Edition: US | UK | IN | CN | JP

Video

Tech Today: Twitter prices shares above expected range at $26

Wednesday, November 06, 2013 - 03:58

Nov 6 - Twitter priced its initial public offering above its expected range to raise more than $1.8 billion, in a sign of strong investor demand.

▲ Hide Transcript

View Transcript

That Twitter IPO it's priced at 26. Dollars a share let's talk to our Reuters West Coast bureau chief. Jonathan Weber so all along the way that our appeal has been about not repeating what happened with FaceBook. So how does this. Higher priced above the higher range fit into that narrative. Well I think that they low ball the price a little bit giving initial range and then it sort of stepped it up gradually over there. Over the last couple weeks. They did increase the price as did FaceBook that they did not increase the number -- -- and I think that app was to speak Arabic FaceBook it was increasing broke the price and the number of shares after. It. So I think maybe they're being aggressive on the price but they're not not being so aggressive on the numbers says it's pretty small float. And so what's the methods there that they aren't that they you know gradually up the price for the IPO. Well I think they did seem very strong demand -- firm institutional investors the road show presentations were apparently quite impressive. And gas -- I think that there's a lot of enthusiasm for the stock. Perhaps little more than anticipated. Now many analysts and investors were comfortable. With the new price rate that was announced two days ago 23 to 25 dollars. -- share now that the IPO topped that what you're saying so what what do you think about how. Analysts and investors were received -- 26 dollars a share. Well I think you're right that our people were comfortable with 23 to 25 problem. When they first came out with their initial range I think a lot of people were surprised at how -- -- -- and essentially expected it to go higher so I think the increase. Is not that big a surprise. It's hard to speak for investors as sort of a general matter but obviously. Twitter feels that -- key institutional clients who will get the initial allocations. That they're pretty comfortable with that price. I'm glad you mentioned institutional -- do you know what is the interest. Institutional vs retail. Well it's always very hard to gauge our retail demand and so it actually gets the markets are you don't get very many sort of early signals about -- So it's a little bit it's a little bit difficult to say I mean I think that. A lot of retail investors will be cautious after -- FaceBook situation. Top five on the other hand this by most measures seems to be a little more reasonably priced and Facebook's -- Our servant may be some some reasonable demand there but again that's the thing that you can't really predict that sort of. Mark it down that abnormal question. I wonder if you have anything as you know mid day we started getting some. Leaks that the price could be about 27 dollars twenty dollars. And then on the conference call started around 5:30 eastern time it took about an hour and a half for them actually come out and say something. Do you know what was happening behind the scenes that discussion between. But Twitter and the bankers. Well there was clearly robots that discussion about what the press should be I don't really know who was at. -- what exactly partners. There's always have the kind of person poll in setting the price on the one hand you wanna. I've taken as much money as possible on the other hand you don't want to over president risk there. A FaceBook type situations are so there's a normal tension there and am -- right. My guess would be that there were just some differing views are. Among different people as to whether it should be 26 -- 27 you know within that term relatively small range. There's seems to have been some some robust discussion. Thank you Jonathan lever the Reuters West Coast bureau chief -- -- Giddens and this is Reuters.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Tech Today: Twitter prices shares above expected range at $26

Wednesday, November 06, 2013 - 03:58