Twitter Inc. increased the price range for its initial public offering, seeking as much as $1.75 billion amid brisk investor demand for the shares.
The microblogging site is offering 70 million shares for $23 to $25 each, a regulatory filing today shows, indicating a market value of as much as $13.6 billion. Twitter had earlier proposed selling shares for $17 to $20 apiece, raising as much as $1.4 billion at a valuation of $10.9 billion at the top end of the range.
Twitter has attracted more than enough interest to sell all shares in its IPO before bankers started officially taking orders for them, people with knowledge of the matter have said. Chief Executive Officer Dick Costolo has been traveling to major U.S. cities to drum up interest for the stock, and making the case that the unprofitable company needs to spend to improve its advertising products, grow its user base and enhance its infrastructure.
The San Francisco-based company is set to price its shares on Nov. 6 and begin trading under the symbol TWTR on the New York Stock Exchange the next day. Goldman Sachs Group Inc. is leading the offering, working with Morgan Stanley and JPMorgan Chase & Co.