It looks like Facebook's IPO debacle may cost the Nasdaq one of the most notable tech IPOs of the year.
TheStreet reports hearing from multiple sources close to the situation that Twitter will list on the New York Stock Exchange rather than the Nasdaq in an attempt to avoid some of the technical issues that complicated Facebook's IPO. A glitch with Nasdaq's system delayed trading by 30 minutes on the day of Facebook's IPO and led to multiple lawsuits.
A rep from the New York Stock Exchange declined to comment on the report. Reps from Twitter could not immediately be reached for comment.
Previous reports suggested that Twitter was leaning towards the New York Stock Exchange. The move appears to be part of Twitter's playbook to do the opposite of Facebook. Twitter filed confidential paperwork to go public, limiting some of the public attention Facebook experienced, and it is also reportedly going with a different banker.
TheStreet also reports that Twitter is looking to do a much smaller IPO than Facebook. According to the report, Twitter is looking to offer about 50 million shares initially priced between $28 and $30, which would raise between $1.4 billion and $1.65 billion. Facebook, by comparison, offered more than 400 million shares priced at $38 for its IPO, raising $16 billion.
"Facebook screwed up on multiple fronts, but the biggest screwup was they issued too many shares," Michael Pachter, an analyst with Wedbush Securities, told Mashable in an earlier interview. "[There were] too many people selling all at once."
Image: Flickr, Brian Glanz
No comments:
Post a Comment