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Twitter IPO Gets a Boost

The company increases the price range on its deal


The buzz on the Twitter (NYSE:TWTR) IPO has been nowhere near the levels of other high-profile deals like Google (GOOG) and Facebook (FB). But it looks like institutional investors are eager to get shares anyway. According to the latest S-1, Twitter has boosted the price range to $23 – $25, up from $17 – $20.

Assuming the offering prices at $25, Twitter will have a valuation of $17.3 billion. While this seems high for a company that has never generated a profit, it is actually still at a discount — on a revenue-multiple basis — to other social stocks like Facebook, LinkedIn (LNKD) and Yelp (YELP).

Twitter plans to hit the market on Thursday, and the lead underwriters include Goldman Sachs (GS), Morgan Stanley (MS), J.P. Morgan (JPM), BofA Merrill Lynch (BAC) and Deutsche Bank (DB).

Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO StrategiesAll 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.

Article printed from InvestorPlace Media,

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