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.
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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.
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.