Twitters confidence appears to be increasing ahead of its initial public offering set for later this week.
The seven-year-old short messaging service on Monday boosted the price range for the IPO,saying that it now expects to price its shares at between $23 and $25 each. It previously planned to sell the shares for between $17 and $20 each. At its new range,the IPO could raise more than $2 billion.
The increase doesnt come as a big surprise. Many observers considered the previous pricing to be relatively conservative,given that Twitter is poised to pull off the years hottest IPO.
And some predicted that rather than set its expectations too high; the company would likely raise its pricing in the days leading up to the IPO.
Twitter said in its regulatory filing that it still plans to sell 70 million shares.
If all of those shares are sold,the offerings underwriters can buy another 10.5 million shares.
At the $25 share price,Twitters market value would be around $15.6 billion. Twitters value is based on 625.2 million outstanding shares expected after the offering,including restricted stock units and stock options.
Some analysts had expected that figure to be as high as $20 billion. But Twitters caution suggests that the company learned from Facebooks rocky IPO last year.
Twitter will begin trading on the NYSE on Thursday morning after setting a price for its IPO sometime Wednesday evening.
Twitter also said in its filing that it received a letter from IBM accusing it of infringing on three of its patents. The letter asks Twitter to take part in settlement negotiations,but Twitter said in its filing that it believes it has a meritorious defense to the allegations.