Twitter to make stock market debut
Twitter has unsealed the documents for its planned initial public offering (IPO) of stock and says it hopes to raise up to one billion US dollars (£618.9 million).
The company is also disclosing that it generated 317 million US dollars (£196 million) in revenue in 2012 and that it had more than 218 million active users as of the end of June, up 44% from a year earlier. That compares with Facebook's nearly 1.2 billion and LinkedIn's 240 million.
The company disclosed last month that it had filed confidential IPO papers to start the process of going public. Today, San Francisco-based Twitter unsealed the papers with the Securities and Exchange Commission.
Twitter booked a larger loss in the first half of this year than a year earlier, but it grew revenue. The company lost 69.3 million US dollars (£42.8 million) in the first six months of 2013, compared with 49.1 million US dollars (£30.3 million) at the same time last year. Revenue more than doubled to 254 million US dollars (£157 million) from 122 million US dollars (£75.5 million).
Twitter did not say which stock exchange it plans to list its shares on, though the company said it intends to use the ticker symbol "TWTR".
The underwriters of the offering are Goldman Sachs, Morgan Stanley, JP Morgan, BofA Merrill Lynch, Deutsche Bank Securities and CODE Advisors.
Twitter's IPO has been long expected. The company has been ramping up its advertising products and working to boost ad revenue in preparation. But it is still tiny compared with Facebook, which saw its hotly anticipated IPO implode last year amid worries about its ability to grow mobile ad revenue.
Twitter's moneymaking potential has minted the company with an estimated market value of 10 billion US dollars (£6.1 billion), based on the appraisals of venture capitalists and other early investors. The IPO could value it higher or lower. PrivCo analyst Sam Hamadeh says he expects Twitter to aim for a market value of about 15 billion US dollars (£9.2 billion) when it prices its IPO.