Twitter prepares to list on NYSE as losses triple
Twitter chooses NYSE
Twitter has announced that it will be selling its shares on the New York Stock Exchange (NYSE) later this year under the stock symbol TWTR.
The update to Twitter’s Securities and Exchange Commission (SEC) filing yesterday revealed the company has chosen to float on NYSE instead of Nasdaq. This move has surprised the press, as Nasdaq has traditionally been more technology-focused, home to Apple, Google and Facebook.
However, in 2012 the long-awaited Facebook IPO was plagued by problems and technical glitches, preventing investors from carrying out trades. The problems resulted in Nasdaq paying a $10m (£6.3m) penalty in May this year.
The Twitter IPO is expected to take place in mid November, with an investor roadshow beginning on October 28. The company’s SEC filing revealed the company is looking to raise $1bn (£624m); however, recent financial results may be cause for concern.
Twitter’s Q3 earnings reveal revenue doubled to $168.6m. However, net losses in Q3 widened to $64.6m, triple the Q3 2012 loss of $21.6m. Its total losses to date in 2013 therefore amount to $133.8m. The SEC filing reveals that this loss could be due to Twitter steeply ramping up its spend on both research and development, and sales and marketing, in 2013 compared to 2012. Meanwhile Twitter’s user growth continues, hitting 231.7 million monthly users at the end of Q3 2013, up 6.13 per cent on last quarter and 38.74 per cent on last year.
Daniel Nolan, managing director at theEword, commented: “Twitter’s IPO is one of the most anticipated events of the year, with lots of investors bound to be interested. Although it is posting a loss at present, it doesn’t seem to be struggling – many will see this as a case of spending money to make money, with a bright future ahead for the company.”