Twitter is said to have completed its paperwork regarding its initial public offering (IPO) and is looking forward to issue the details to public this week, according to Quartz. Micro blogging site is trying to launch its IPO on before Thanksgiving on the New York Stock Exchange (NYSE), most probably.
Market factors may affect the IPO
According to Quartz, there can be some uncalled situations like changes in market condition and probable shutdown of the federal government, which can delay the filing.
Citing one of the sources, report said, “Negotiations in Congress over whether to extend the U.S. debt limit could roil markets and damp investor appetite for public offerings”.
On September 12th Twitter published on its blog that it has “confidentially submitted” its IPO documents with the Security and Exchange commission (SEC) under the JOBS act, which gives it the right to cover its registration process.
Under JOBS act Twitter gets the freedom to keep its several round of discussion related to IPO with the SEC confidential further nullifying any possibility of hurdles to go public. Twitter will not need to disclose the vital information about the company like data about its customers, revenues, and users.
Twitter is extra cautious to avoid the failures that gripped the Facebook Inc (NASDAQ:FB) IPO launch, and in the quest has decided upon going under cover, and filing the registration process two months earlier before revealing to the public.
A lot depends on this IPO
Twitter’s IPO is one of the most anticipated in recent years, but is expected to be far smaller than Facebook’s $16 billion offering last year, in part because Twitter has less than $1 billion in revenue. Facebook had $3.7 billion in sales in 2011, the year before its IPO.
Twitter has hired Goldman Sachs to take the process ahead of Initial Public Offerings. Twitter hired two more banks – J.P. Morgan Chase& Co. and Morgan Stanley to head the process along with Goldman Sachs, according to a source.
Observers at Wall Streets are looking forward to regain the investors’ confidence with companies like Twitter, Hilton and Chrysler issuing IPOs after Facebook’s decline post IPO.