Twitter Goes Public, Stock Opens Up 73 Percent - New York News

Twitter Goes Public, Stock Opens Up 73 Percent

Posted: Updated:
New York, NY -

(FOX 11 / AP) Twitter's stock debut up 73 above its IPO price, valuing Twitter at more than $31 billion. Twitter's trading debut is the most highly anticipated since Facebook's last year. Twitter will trade under the ticker symbol "TWTR."

Twitter priced the initial public offering of stock at $26 per share, valuing the company at more than $18 billion based on its outstanding stock, options and restricted stock that'll be available after the IPO. The pricing means the short messaging service will raise $1.8 billion in the offering, before expenses.

The high price comes despite the fact that Twitter has never turned a profit in seven years of existence. Revenue has been growing, but the company is also investing heavily in more data centers and hiring more employees.

Here's a running account of Twitter's first day of trading, presented in reverse chronological order. All times are EST.

---

- 10:55 a.m.: AP's (at)BarbaraOrtutay notes that the $31 billion value puts Twitter in the ballpark of Yum Brands and Deere & Co.

It's also slightly below State Street Corp.

---

- 10:53 a.m.: The opening price values Twitter at $31.3 billion.

To calculate its value, the AP is using 694.8 million shares that Twitter is expected to have outstanding after the IPO, counting restricted shares and stock options it plans to issue to employees. At the $26 IPO price, the value was more than $18 billion.

---

- 10:51 a.m.: Twitter stock opens at $45.10, 73 percent above IPO price

---

- 10:50 a.m.: Range is now $45 to $45.25, or up to 74 percent above IPO price. Very close to debut.

RT (at)KenSweet: They're closing the book.

---

- 10:45 a.m. AP's (at)KenSweet says current bid is $45.25. The debut is near in (hash)TwitterIPO.

---

- 10:40 a.m.: Patrick Stewart tweets on (hash)Ring of opening bell as Twitter trade debut imminent.

RT (at)SirPatStew: Honored to join (at)ev (at)jack (at)biz (at)dickc & the (at)Twitter team at their historic IPO this morning. (hash)Ring! pic.twitter.com/XaJpYW2kIh

---

- 10:35 a.m.: It's getting close to Twitter's stock debut. First indication for opening price is even narrower: $45.50-$46.50.

The high end would be 79 percent above its IPO price.

---

- 10:30 a.m.: AP's (at)KenSweet now says opening price narrowed: $45-$47.

He reports: "This is a good sign. Could mean we're finding the right price. Progress."

---

- 10:20 a.m.: AP's (at)KenSweet says opening price is expected even higher: $43-$47.

The range for first indication means Twitter could start trading at up to 81 percent above its IPO price.

---

- 10:15 a.m.: RT (at)KenSweet: I've heard some traders mention that this may not open until 1030, maybe 11. But things are changing rapidly.

---

- 10:10 a.m.: AP market reporter (at)KenSweet explains the role (at)Barclays has in (hash)TwitterIPO.

Trading for Twitter's stock is under the supervision of Barclays Capital. Twitter hired the bank to be its "designated market maker." A DMM supervises the trading of a company's stock. He or she is an experienced trader in charge of ensuring that buying and selling go smoothly. If trading becomes volatile, the DMM can step in and buy shares using his or her firm's own money.

DMMs are especially important the day a company goes public, because the DMM coordinates between Twitter, the company's investment banks and NYSE's floor traders to get a stock trading. If technical problems arise, the NYSE uses DMMs to bypass electronic trading systems, allowing humans to trade a company's stock. That is not possible on all-electronic stock exchanges such as the Nasdaq, which had technical problems during Facebook's IPO last year.

Barclays' role as Twitter's DMM does not mean it is in charge of the entire IPO process. That role falls to Twitter's investment banks: Goldman Sachs, Morgan Stanley and JPMorgan Chase.

Read more: http://bigstory.ap.org/article/twitter-picks-barclays-coordinate-ipo-trading

- Ken Sweet, New York, (at)KenSweet

---

- 10 a.m.: (hash)TwitterIPO first indication for opening price: $42-46.

That means Twitter could start trading at up to 77 percent above its IPO price. Trading is to begin soon as representatives from Barclays continue negotiations to find the right price.

- Ken Sweet, New York, (at)KenSweet

---

- 9:50 a.m.: With the (hash)Ring of the (hash)NYSEBell past, what will happen? (at)KenSweet reports.

Traders gather around Twitter's booth on the floor of the New York Stock Exchange. At Twitter's post, the company's "designated market maker" starts taking orders from the traders, who are representing dozens of firms and hundreds of investors.

The goal of the DMM, who used to be known as the NYSE's specialists, is to figure out what is the best price to start trading Twitter's shares.

Due to massive investor and media interest in Twitter, the actual negotiation over what are the right price for Twitter's now-public shares will take some time. It could take as little as 20 minutes, or it could take an hour. The NYSE wants to avoid the trading debacle that Nasdaq faced with last year's Facebook's IPO, so it's going to be careful.

Read more: http://bigstory.ap.org/article/going-public-how-twitters-ipo-will-work

- Ken Sweet, New York, (at)KenSweet

---

- 9:40 a.m.: The market is open at (at)nyse, though Twitter's stock won't trade right away.

RT (at)NYSEEuronext: (hash)RING! Markets OPEN. (hash)NYSEBell has rung, now begins (hash)TwitterIPO price discovery. Wait for it . pic.twitter.com/gPxGgB6QWa

The opening bid is $35, reports AP's (at)KenSweet. It's the first indication of where the stock will open later in the morning.

As the NYSE's opening bell was rung, the graphic below displayed the hashtag (hash)Ring!

Who rang the bell?

RT (at)NYSEEuronext: (at)Twitter owes success to its users, so gives (hash)NYSEBell to (at)SirPatrickStew, (at)VivienneHarr & (at)Bostonpolice (hash)TwitterIPO pic.twitter.com/fAprlGV8Vs

- Bree Fowler, New York, (at)APBreeFowler

--

- 9:25 a.m.: What's being said on Twitter? IPO is the 10th most popular trending topic in the U.S.

IPO is behind Thanksgiving, Texas, NFL and (hash)throwbackthursday.

Worldwide, it doesn't make into the Top 10. Nobel Prize-winning author Albert Camus does. It's his birthday, after all.

- Barbara Ortutay, New York, (at)BarbaraOrtutay

---

- 9:05 a.m.: RT (at)KenSweet: Floor trader Kenneth Polcari thinks twitter's $26 share price is pretty fair. Doesn't expect it to double on the open.

---

- 8:50 a.m.: Busy morning at (at)nyse trading floor, reports AP's (at)KenSweet

RT (at)KenSweet: Orders for Twitter have been coming in since 8 am, floor trader Jonathan Corpina tells me. Very busy.

RT (at)KenSweet: Corpina expects a smooth opening. The NYSE does IPOs all the time, he says. The difference here is volume and media attention.

RT (at)KenSweet: Traders use these handheld wireless computers to send orders. Paper orders ended a long time ago: pic.twitter.com/bwz8UK4xcB

---

- 8:40 a.m.: Why Twitter went to (at)nyse. Pressure is on with opening bell less than an hour away. (hash)lessonsfromFB

Twitter chose to go public on the NYSE over the all-electronic Nasdaq. One of the reasons why Twitter likely chose the NYSE over the Nasdaq has to do with problems Facebook faced with its Nasdaq-listed IPO last year. A glitch in Nasdaq's trading software led to trading delays and order failures on Facebook's first day of trading.

The NYSE isn't taking any chances with Twitter. The exchange tested its trading software on Oct. 26 to prepare for Twitter's debut. If the NYSE faces technical problems with its ordering software, the exchange can switch over the traditional human-based stock trading that dominated Wall Street for decades.

RT (at)KenSweet: NYSE traders and execs are really playing up the human element to this IPO. It's a shot across the bow at the Nasdaq.

Read more: http://bigstory.ap.org/article/twitter-list-new-york-stock-exchange

- Ken Sweet, New York, (at)KenSweet

---

- 8:20 a.m.: AP markets reporter (at)KenSweet says media outnumber traders 5:1 (at)nyse trading floor

It's a media madhouse. But it's still more than an hour before the opening bell, so more traders should be coming. Expect a big crowd.

RT (at)KenSweet: The NYSE is decorated head to toe. with twitter logos. They went big here to promote: pic.twitter.com/pnwRQ9e6QG

---

- 8 a.m.: After (hash)TwitterIPO pricing, market debut comes Thursday.

It should come as no surprise that Twitter used Twitter to announce its public stock debut.

It began with a tweet on Sept. 12: The 7-year-old company posted on its official Twitter account that it has "confidentially submitted an S-1 to the SEC for a planned IPO." Details about offering emerged after the IPO documents were released publicly later.

On Oct. 24, Twitter set its IPO price target at $17 to $20 per share. It raised that to $23 and $25 per share, signaling an enthusiastic response from prospective investors. The actual price on Wednesday night was even higher, at $26. That bodes well for the company's stock when trading begins.

Twitter also took to Twitter to announce that price: https://twitter.com/twitter/status/398235511254298624/photo/1

The company is offering 70 million shares in the IPO, plus an option to buy another 10.5 million. If all shares are sold, the IPO will raise $2.09 billion, making it the biggest IPO for an Internet company since Facebook raised $16 billion last year.

Of course, Facebook made its debut with high hopes, only to see its stock fall below the IPO price by the second day of trading. Twitter has valued itself at just a fraction of Facebook and sought to cool expectations in the months and weeks leading up to the offering.

- Barbara Ortutay, New York, (at)BarbaraOrtutay

  • Local NewsLocal NewsMore>>

  • Pregnant woman says officer put her in choke hold

    Pregnant woman says officer put her in choke hold

    Tuesday, July 29 2014 11:04 AM EDT2014-07-29 15:04:28 GMT
    A Brooklyn woman who is seven months pregnant released photos that she said show an NYPD officer putting her in a choke hold as she was being arrested for grilling on the sidewalk outside her home.  Rosean Miller was arrested for disorderly conduct on Saturday and her husband Moses was arrested for obstructing government business, a criminal charge. It's the latest in a string of reported choke holds by police officers. The move is not allowed under NYPD policy. 
    A Brooklyn woman who is seven months pregnant released photos that she said show an NYPD officer putting her in a choke hold as she was being arrested for grilling on the sidewalk outside her home.  Rosean Miller was arrested for disorderly conduct on Saturday and her husband Moses was arrested for obstructing government business, a criminal charge. It's the latest in a string of reported choke holds by police officers. The move is not allowed under NYPD policy. 
  • Stuck NJ Transit train removed

    Stuck NJ Transit train removed

    Tuesday, July 29 2014 10:03 AM EDT2014-07-29 14:03:41 GMT
    A New Jersey Transit commuter train that became disabled just outside the Hudson River tunnel in Manhattan on Tuesday has been removed. 1,000 passengers were on board when the Northeast Corridor train became stuck, according to NJ Transit officials. A rescue train was attached to the disabled train and removed to Penn Station about an hour behind schedule. It is not clear what caused the mechanical problem. There are residual delays on NJT trains into and out of Penn Station.
    A New Jersey Transit commuter train that became disabled just outside the Hudson River tunnel in Manhattan on Tuesday has been removed. 1,000 passengers were on board when the Northeast Corridor train became stuck, according to NJ Transit officials. A rescue train was attached to the disabled train and removed to Penn Station about an hour behind schedule. It is not clear what caused the mechanical problem. There are residual delays on NJT trains into and out of Penn Station.
  • The Big Idea

    Making New York City more energy efficient

    Making New York City more energy efficient

    Tuesday, July 29 2014 9:22 AM EDT2014-07-29 13:22:47 GMT
    More than half the population of New York City rides public transportation to work. No other metropolis in this country even approaches that percentage or the MTA's total number of riders. For that reason, New York likely ranks as the most energy-efficient city in the nation. But what would it take to make the city even more energy-efficient or even self-sufficient?
    More than half the population of New York City rides public transportation to work. No other metropolis in this country even approaches that percentage or the MTA's total number of riders. For that reason, New York likely ranks as the most energy-efficient city in the nation. But what would it take to make the city even more energy-efficient or even self-sufficient?
  • Tech NewsTech NewsMore>>

  • myFOX Tech

    Avast Buys 20 Used Smartphones, Reads "Deleted" Data

    Avast Buys 20 Used Smartphones, Reads "Deleted" Data

    Wednesday, July 9 2014 5:10 PM EDT2014-07-09 21:10:34 GMT
    Avast buys 20 used phones, reads "deleted" data. Here are 5 steps you can take to protect your data before selling your phone.
    Avast buys 20 used phones, reads "deleted" data. Here are 5 steps you can take to protect your data before selling your phone.
  • myFOX Tech

    Review: Is Samsung’s Gear Fit A Good Fit For Your Exercise Needs?

    Review: Is Samsung’s Gear Fit A Good Fit For Your Exercise Needs?

    Wednesday, July 2 2014 1:42 PM EDT2014-07-02 17:42:25 GMT
    Review: Is Samsung's new smartwatch/fitness tracker, the Gear Fit, a perfect fit for your workout needs? Our Tech Ninja gives it a workout!
    When Samsung released the first generation Galaxy Gear watch, I was not impressed. At all. Cool idea, but horrible execution. Now they've released the Gear Fit and, my how things have changed!
  • myFOX Tech

    Google Announces Android Wear, Android Auto, Android Fit, Android TV and More

    Google Announces Android Wear, Auto, Fit, TV and More

    Wednesday, June 25 2014 6:35 PM EDT2014-06-25 22:35:15 GMT
    Day one of Google’s I/O Developer conference began with a bang at Moscone Center in San Francisco, CA. The tech giant announced Android Wear, TV, Fit, Auto, the LG G Watch, Samsung Gear Live and more!
    Day one of Google’s I/O Developer conference began with a bang at Moscone Center in San Francisco, CA. The tech giant announced Android Wear, TV, Fit, Auto, the LG G Watch, Samsung Gear Live and more!
Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices