The Twitter IPO reportedly has found an exchange. According to The Street, Twitter will launch a $1.5 billion IPO on the New York Stock Exchange — a big win for the NYSE, which has been working hard to get a larger share of tech offerings.
Not to say I told you so, but … I told you so.
But as I mentioned in my article discussing why the Twitter IPO was destined for the NYSE, the Nasdaq has been losing its luster of late. The Facebook (FB) IPO turned out to be a disaster, and the Nasdaq had to pay a $10 million fine to the SEC because of botched orders. Since then, the exchange has suffered from other mishaps, such as a three-plus hour outage (called the “flash freeze”).
Meanwhile, the NYSE also has the advantage of being home to mega-brands like Chevron (CVX), Coca-Cola (KO), Pfizer (PFE) and Walmart (WMT). These are the kinds of companies Twitter will want to get closer to. Being on the NYSE is just another opportunity for networking with these potential customers.
And it’s a good bet that the NYSE will triple-check its systems to make sure that no glitches hamper the Twitter IPO.
Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.