£16 Twitter shares to go on sale

£16 Twitter shares to go on sale

Shares in Twitter have been priced at 26 dollars (16.25) each ahead of the company's first day of trading on the New York Stock Exchange today.

The share prices are above the range of 23 to 25 dollars (£14.30 and £15.60) announced on Monday.
The company, which has more than 230 million users but is yet to make a profit since it was launched seven years ago, is valued at more than 18 billion dollars (£11.2bn).

Twitter's public debut is the most highly anticipated since that of Facebook, in May last year. But it has priced itself at a mere fraction of Facebook's initial 104 billion-dollar (£65bn) valuation, in a likely attempt to avoid Facebook's fate of taking more than a year to surpass its initial public offering price.

Twitter is offering 70 million shares for sale, along with an option to buy another 10.5 million.

Mark Mahaney, from investment bank RBC Capital Markets, said he expected Twitter's shares to rise after listing.

He told the BBC: "Just as Google, Amazon and Facebook have become internet utilities, so too may Twitter.

"As a public, real-time, conversational and distributed platform, Twitter is becoming an essential service for consumers, businesses, media companies, and advertiser."

One of the major challenges facing Twitter as a new public company will be to generate more revenue from outside America.

While more than 75% of users are outside the US, just 26% of its revenue comes from abroad.
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