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Twitter IPO Is on the Fast Track

The deal reportedly could hit Wall Street by Thanksgiving


Well, turn up the timetable on the Twitter IPO — according to reports, we could see a Twitter offering before Turkey Day.

Reuters reported today that a source said the Twitter IPO probably will hit the markets before Thanksgiving, and if true, that would be much sooner than expected. The initial buzz was that the offering would happen sometime in the first quarter of 2014.

Twitter reportedly has selected Goldman Sachs (GS) as the lead underwriter, and it soon could add others to the syndicate, such as Morgan Stanley (MS), JPMorgan (JPM) and Bank of America (BAC).

Assuming Twitter’s valuation comes to about $15 billion or so, the Twitter IPO should pull in $1 billion to $2 billion in proceeds. That should mean fees well more than $60 million to $70 million, according to Reuters, so that’s a nice payday for Wall Street.

So why is Twitter so eager to get a deal done?

For one, it certainly helps that Facebook (FB) has gotten back on track, helping to repress the memories of its botched IPO.

However, the most important factor probably is the explosive bull move across the social industry. For the year-to-date, Pandora (P) shares have gained 195% and LinkedIn (LNKD) is up 115%. Even Groupon (GRPN) is well beyond a doubler with 140% gains in 2013.

Also helping Twitter’s nerves is the robust IPO market. Today alone, we’re watching the FireEye (FEYE) and Rocket Fuel (FUEL) offerings spout off returns of roughly 100%.

The IPO window is wide open, and Twitter has plenty of motivation to fly through it.

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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