Twitter boosts price range for this week's IPOMonday 04 November 2013 16.11
Twitter today boosted the price range for its initial public offering to $23 to $25 per share, as the microblogging network now seeks to raise up to $1.75 billion.
The previous range was $17 to $20 per share.
Twitter also said it has received a letter from International Business Machines Corp alleging Twitter infringed at least three US patents held by IBM.
With Twitter selling 70 million shares in the offering, the company would be valued at more than $13 billion under the new price range.
Twitter's IPO is fully subscribed, meaning it has attracted more than enough investor interest, according to a source familiar with the offering.
Twitter management has been travelling across the US over the last week, speaking with potential investors.
Twitter's IPO is set to price on Wednesday, with shares trading on the New York Stock Exchange on Thursday.
The market will be on alert to see if Twitter follows the fate of last year's botched Facebook IPO: the social networking company's stock hit the market in May 2012 and was plagued by allocation problems, trading glitches and a selloff. The shares did not recover the IPO price until a year later.
Views have been mixed on what investing strategy to take for Twitter's IPO. According to a Reuters survey of 29 broker-dealers and independent advisers, 23 said they are not recommending Twitter shares.
Only one said he would recommend it - and only to certain clients. Five others said they would wait to snap up the stock if it plunges after it begins to trade.
But while retail interest might be low, tech industry analysts say there is expected to be a good appetite for Twitter's stock from institutional investors at the current valuation.