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Twitter’s IPO Turns 1600 People Into Overnight Millionaires

Twitter’s recent IPO has proved to be an immense success so far. The company’s shares, originally announced at $26 a piece, are currently looming near $42 a mere days after the IPO. PrivCo has now revealed that the successful IPO has turned 1600 Twitter shareholders into new millionaires.


Twitter

The successful IPO of the micro-blogging site has also generated a huge bill. With the state of California imposing an 8% tax, it stands to get $479 million from the whole thing. Not only that, 1600 new millionaires will also add significantly to the tax gross of the state.

At the same time, the federal tax levied on the IPO is 32%. In other words, IRS will be getting a fat check of $1.72 billion over it. Interestingly, a number of Twitter’s employees hold a significant number of the company’s shares. Many of these employees are not even on an executive position.

With the company going public, they are among the lucky ones who have turned into overnight millionaires. Although the company’s stock price has risen at an unbelievable pace, indicators suggest that Twitter’s fortunes in the stock market will continue to rise.

Given the nature of Twitter’s influence as a fast-paced, highly-interactive social network, the company’s future prospects appear far better than others such as Facebook. This has triggered an extra-ordinary interest of the investors who continue to purchase Twitter’s stock ravenously.

Source: PrivCo

Courtesy: Business Insider

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