The company will trade with the ticker TWTR, and the filing reveals hope that the company can raise $1 billion in its initial offering, with stock valuing the company at around $15 billion.
Filed as an S-1 thanks to the recently signed JOBS Act, companies with less than $1 billion in annual revenue can file confidentially and they only need two years of audited financial statements and historical financial data. Without the Act, the company would have needed three years and five years of the documentation, respectively.
In its IPO, Twitter states it has over 200 million monthly active users, and 500 million tweets per day. Revenue jumped from 2011 to 2012 by nearly 200 percent, up to $315.9 million. The companies losses decreased by 38 percent, to $79.4 million. Since inception, the company has lost slightly over $400 million but still has $375 million in cash on hand.
Evan Williams, one of the company's founders, will be the big winner in the IPO. Owning 12 percent of outstanding shares, Williams is expected to become a billionaire overnight. A few other firms and individuals will net $300 million or more in profits on the IPO.
Written by: Andre Yoskowitz @ 4 Oct 2013 8:45
