Twitter has learned from the mistakes made by Facebook in a number of ways, one of which is its choice of exchange to list on. The NASDAQ had technical issues when Facebook floated, and trading was delayed for over an hour. Twitter has chosen to float on the NYSE.
Twitter originally stated a price range of $17 to $20 per share, but institutions which bought shares in the stock placing paid $26 per share, indicating strong demand. Some analysts have suggested that Twitter played down the initial public offering (IPO) price, as Facebook’s share initially rallied but then collapsed after it was listed. Twitter would rather avoid a similar situation.
The NYSE opens at 2.30pm London time, but for new listings an initial auction is held. This could last approximately 30 minutes, so we are expecting free trading to begin at around 3pm London time. Even though shares were placed at $26 per share, the stock could open much higher or lower than the placement price.
Under the ‘Special’ tab on our trading platform we are offering a grey market on the market capitalisation of the company. At the moment our clients are indicating it will be $23 billion.
Once the shares begin free trading on the NYSE, we will offer the stock under our ‘Shares-US’ section.