Twitter Sets Price Ahead of IPO

Twitter will begin trading on the New York Stock Exchange on Thursday under the symbol TWTR

By Lori Preuitt
|  Wednesday, Nov 6, 2013  |  Updated 8:46 PM PDT
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Twitter Sets Price Ahead of IPO

Justin Sullivan/Getty Images

Twitter headquarters in San Francisco, California, is seen in this Getty file image.

Twitter will price its IPO stock at $26 per share.

CNBC was first to report the price.

Within minutes, Twitter tweeted the number.

"We've priced our initial public offering of 70 million shares of our common stock at a price to the public of $26 per share," Twitter stated.

The stock is scheduled to begin trading on the New York Stock Exchange on Thursday. It will be listed under the symbol "TWTR."

The price values Twitter at more than $18 billion based on its outstanding stock, options and restricted stock that'll be available after the IPO. That's more than Macy's, which has a market capitalization of $17 billion, and Bed Bath & Beyond, which is around $16 billion.
 
The pricing means the short messaging service will raise $1.8 billion in the offering, before expenses.

Initially the expected IPO range was between $17 to $20  per share.

The last big Silicon Valley IPO was Facebook which debuted in May 2013. Facebook's stock price was set at $38 per share and was sold on the Nasdaq.  Facebook raised $16 billion in its initial listing which valued the company at $104 billion.

Thursday will be a day that will make several well-known names in the Bay Area even more rich.

Most of the founders and early leaders will benefit, and one, Evan Williams will likely become a billionaire.

The Associated Press put together the list of money makers expecting the stock to be listed at $25 a share:

  • Jack Dorsey, co-founder and chairman, was CEO from 2006 to 2008. His 4.3 percent stake in the company will be worth about $586 million if Twitter's IPO hits the high end of its price range.
  • Noah Glass, co-founder. His name isn't mentioned in Twitter's IPO filings, and he apparently won't make much money, if any, from the company's success.
  • Evan Williams, co-founder, CEO from 2008 to 2010. He emerged as Twitter's largest shareholder when he bought the service for an undisclosed amount through a company called Obvious, which he owns. All signs point to Williams being minted as a billionaire when Twitter's stock begins trading. His 10.4 percent stake will be worth $1.4 billion if Twitter's IPO hits the high end of its price range. 
  • Biz Stone, co-founder. Although his remaining stake in Twitter is too small to be listed in the company's IPO papers, Stone is believed to have made millions already by selling some of his holdings in previous years.
  • Dick Costolo, CEO from 2010 to present, joined Twitter in 2009 as chief operating officer. He owns a 1.4 percent stake in Twitter, which will be worth about $192 million at the high end.

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