Twitter’s expected IPO had been causing a lot of stir in the tech-finance arena for quite some time now. The company announced a share price of $26 and hoped for an $18.3 billion valuation. But as soon as Twitter went public, there was strong investor interest and the share price surged up to $45.10.
The total number of outstanding shares defined by Twitter was 545 million. Out of these, the company made some 70 million shares available for trading. Before it went public, Twitter announced the value of its shares to be $26 a piece. At this carefully calculated share price, Twitter looked forward to a fully-diluted valuation of some $18.3 million.
But when the bell rang on Thursday and trading started, it was a gleeful frenzy for the micro-blogging website. An incredible and surprising amount of interest was shown by investors who bought the company’s stock right away. Such heightened interest of the investors surged the share price from $26 right up to $45. Currently, the share price stands in the neighborhood of $44.
The $45.10 share price gave Twitter a valuation of $24 billion, which is a lot higher than the estimated $18.3 million. In other words, the IPO of the company has been wildly successful and the investor interest is expected to continue. With stock value surging far beyond the initially pegged $26 per share, many analysts have already started urging the investors to sell.
At an unexpectedly high share price right now, any investor who tried to sell the stock will get a really good value on his money. But the bigger question is, will Twitter’s stock rise further or is it going to plummet much like Facebook‘s share price after the initial IPO brouhaha. The answer to this question will decide the fate and fortune of both Twitter and its investors.