The most popular micro-blogging website of all time Twitter is finally filing its Initial Public Offer (IPO) at the US stock market on November 15, 2013. Currently it is one of the
most trending news in all over the technology and social media world.
A research paper recently claimed this news that the highly anticipated
Twitter’s IPO is coming up to hit the American Stock Market in the next month
only. If you remember, this social media giant has very recently revealed the
ultimate plan of raising at least $1 billion from its proposed initial public
offer in the initial registration form (S-1) with the US Securities and
Exchange Commission (SEC).
The above mentioned research had been done by PrivCo, which is an US-based supplier of the all important
financial and business research on several major privately-held enterprises. It
has clearly mentioned that an earlier draft version of Twitter's S-1 form
"inadvertently" showcased February 15 as the last date for the much-important
lock-up period. He employees must sell their all of their restricted stocks
before that mentioned date.
Here is a small excerpt from that report:
"The accidental date reveals for the
first time that Twitter plans for IPO on November 15, 2013 (counting back 90
days from the February 15 employee restricted stock units’ tax Sale 3-month
lockup).
Twitter's IPO advisors slipped up and
inadvertently revealed the end-date for the lock-up period as the fixed date of
February 15, 2014 (rather than leaving the date blank as most filings do until
right before the final pre-Roadshow S-1 amendment, when the IPO date is
announced).”
It has to be added here that as per the current norms of the United
States, the lock-up period for every employee to sell off their restricted
stocks in order to cover up the tax obligations upon receiving such securities
is generally 90 days after an IPO.
This simply means that Twitter is all set to go public on the
mid-November, and now it is surely giving the final touch up to the procedures.
PrivCo clearly said that the microblogging site had indeed set a final target
of November 15 as its IPO date.
As per the latest released data, Twitter has successfully managed to
gather a user base of more than 218 million monthly active
users in the three months that ended on June 30, 2013. The best part is that
the users of this website generate more than 500 million tweets every single
day, which is a huge engagement for sure.
In 2011 Twitter recorded a
net profit of $106.31 million, which increased drastically to $316.93 million
in the last year. The site has been performing quite well in the past few
years, and it is might be the best time for it to go public. Many tech experts
already predicted that Twitter might become an
Advertising Broadcast Medium very soon.
Twitter’s main aim is to
properly utilize the proceeds from its IPO for covering the much-needed operating
expenses, capital expenditure needs, among several others.
Wrap Up
Twitter is
taking every step towards IPO filing
with utmost care, as it doesn’t want to feel the same pain that Facebook
has received in its initial days of hitting the US stock market. After
measuring all the aspects finally Twitter is going public, and we hope it will
be a great success.
