Tag Archives: IPO

Nasdaq

Nasdaq Secures Listing for New American Airlines Group Inc. Post Merger

As American Airlines (AAMRQ) and US Airways Group Inc. (LCC) have been finalising the details of their mergers, American stocks exchanges and indices have been battling it out on gaining the new listing, with Nasdaq emerging victorious at the end, a huge victory after the index recently failed to secure Twitter Inc. (TWTR)’s Initial Public Offering.

The new firm will operate by the name American Airlines Group Inc. and have AAL as its trading symbol, a statement revealed today. A U.S. antitrust lawsuit was settled this week between AMR Corp. and US Airways, eliminating last obstacles as AMR Corp. will receive a bankruptcy exit ruled by a judge on 25th November.

Nasdaq’s confidence has been boosted once again with the listing of the new American company after last year’s unsuccessful attempt at securing Twitter, the greatest and most important IPO in the technology sector since Facebook Inc. On its first day of trading, 7th November, Twitter, which chose to trade on the New York Stock Exchange, sky-rocketed 73 percent.

Ed Stewart, a US Airways spokesman with Fleishman Hillard Inc. said today that “while Nasdaq has historically had a reputation for being a tech-centric exchange, it has done a great job of attracting other industries and is simply a better fit for the new company and the direction we want to go,”

American and US Airways anticipate the completion of their merger in December. The merged airline will distribute control between AMR bankruptcy creditors, who will own 72 percent of the new shares, and the existing US Airways holders, who’s share amounts to the other 28 percent. AMR’s headquarters in Fort Worth, Texas, will serve the new company in the same capacity as well.

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A Tale Of Two IPOs: Twitter vs Facebook

Internet IPO’s have been big headline news recently. No one can fail to have noticed that Twitter’s initial public offering recently was completely different to the 2012 IPO of its biggest social media rival, Facebook. Twitter wanted to avoid making the same mistake of overpricing but some analysts argued that Twitter failed to raise maximum funds, adding that if it had valued its stock higher for the IPO, it could have easily raised another billion. Was the strategy of the micro-blogging site a success and does the share value and initial demand give us any clues to traders about the firm’s future? Read more…

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As Twitter Takes Off, Who’s Next On The Runway?

For technology executives weighing market flotations for Silicon Valley startups, this week’s gangbusters Twitter Inc initial public offering sent a powerful signal: full speed ahead. About a dozen private companies are valued at more than $1 billion and many of them have already been holding informal talks with bankers with a view to accelerating their IPO plans. File-sharing company Box has picked Morgan Stanley, Credit Suisse and JP Morgan to lead its IPO. The company has been valued at more than $1.2 billion by private venture capital investors but it remains unclear whether it is profitable. Twitter’s lack of profits proved to be no obstacle to the micro-blogging site raising as much as $2.1 billion in its IPO. That opens the door for other big-name private companies including Square, the payments company founded by Twitter co-founder Jack Dorsey which has begun exploring the possibility of an IPO next year. Profits are not expected until 2015. Airbnb, an accommodation service, is also often cited as a potential IPO candidate. “They don’t have inventory and have pretty low overhead,” said analyst Michael Pachter, who believes the company is profitable. Social media service Pinterest, meanwhile, raised $225 million at a $3.8 billion valuation in October even though it had only begun to make money in September by showing ads. Snapchat is perhaps one of the furthest down the line. Used by 9% of U.S. mobile phone users, Snapchat raised $60 million earlier this year at a valuation of $800 million. The market’s embrace of Twitter comes right as the IPO market enters what is typically a seasonal lull around the time of the Thanksgiving holiday and do not really get started again until February or March. With many in Silicon Valley believing that the appetite is growing for tech IPOs, there are a number of similar companies also taxiing along the runway ready for take-off. Watch this space!

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Twitter Makes A Flying Debut With IPO

Twitter flew high in its first day of public trading, raising billions for the company’s founders and highlighting a growing exuberance rational for stocks and social-networking stocks in particular. Shares of Twitter traded between $45 and $47 in their first hours on the New York Stock Exchange on Thursday morning. At the stock’s $45.10 opening price on Thursday, Twitter had a total market value of more than $25 billion, making it worth more than companies such as Kellogg, Netflix and Whole Foods and twice the value of iconic aluminum giant Alcoa. Once it started trading, Twitter immediately got on track for an 80 percent first-day jump in its stock price, harkening back to the go-go days of the tech-stock bubble in the late 1990s. Twitter’s hyped IPO comes at a time when some market watchers are starting to warn of a new bubble forming in stocks. The Dow Jones Industrial Average and Standard & Poor’s 500-stock index are at record highs, and the tech-heavy Nasdaq is at its highest levels since early 2000, just after the tech bubble burst. Investors must therefore grapple with the fact that the hyperactive social network has not yet figured out how to make any money. It lost nearly $65 million in the quarter that ended in September, nearly three times the loss it suffered in the same quarter in 2012. The appetite for Twitter’s shares, however, is a sign that investors have faith in the company’s ability to find a way to spread its wings and steer itself into a #profit!

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Twitter IPO to Decide Faith of Web Startups

Twitter Inc. (TWTR)’s initial public offering stakes a lot more than shares held by employees and investors. The firm’s performance will impact how dealmakers in Silicon Valley value upcoming Internet startups.

A strong Twitter debut will give the green light to venture capitalists and entrepreneurs for other consumer-Internet IPOs and the level of prices startups can handle in funding. A decline in shares, however—like the one experienced by Faceboon Inc. (FB) after its IPO in May 2012—could hurt valuation of internet startups and drive venture capital downwards.

Facebook’s sharp decline of 50 percent within its first three months as a public company spread its effects all across the startup field. Venture investor loss of faith in internet companies dropped for three consecutive quarters before picking up in the second quarter of this year, according to the National Venture Capital Association.

Twitter’s offer seeks to raise as much as $1.4 billion and it is speculated that the company has already drawn enough interest to sell of the shares in its IPO.

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Twitter Limits IPO Valuation, Just Like Its Tweets

Twitter Inc. (TWTR) is seeking a valuation of 9.5 times 2014 sales in its Initial Public Offering next month, according to data filed with the Securities and Exchange Commission yesterday, which would seem to extend the company’s economical approach of tweet characters to its stocks as well. The valuation comes 27 percent lower than the current rate of Fecebook Inc (FB) at 12.9 times 2014 sales, and 29 percent below Linked In Corp. (LNKD)’s 13.4 times 2014 sales.

The company that has popularised maxim-like short messages across the globe highlights in its relatively low valuation decision that it does not want to repeat history by following in the footsteps of Facebook, Groupon Inc. (GRPN) and Zynga Inc. (ZNGA), all of which lost more than half their value in the six months following their IPOs Twitter CEO Dick Costolo approach, in fact, has distinguished the company from its internet peers, as the filing to go public happened confidentially to avoid unnecessary hype that could drive prices up.

Twitter is planning to sell 70 million shares, which amount to a 13 percent stake, between $17 and $20 to raise about $1.4 billion, according to yesterday’s filing.

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Top Tweet Of The Day? Twitter, As IPO Pegs Valuation At $11 billion

Seeking to avoid a repeat of Facebook’s much-maligned public debut, Twitter revealed more modest ambitions, saying its initial offering would raise up to $1.6 billion (987.8 GPB) and value the company at up to about $11 billion. The valuation was more conservative than the $15 billion some analysts had expected for the social media phenomenon, potentially attracting investors who might consider the money-losing company’s listing price a better deal, with room to rise. Twitter had signalled for weeks it would price its IPO modestly to avoid the sort of stock plummet that spoiled Facebook’s coming-out party. Twitter’s offering will be the most high-profile Internet IPO since Facebook’s May 2012 debut, when the social network giant’s shares fell below their offering price and did not recover until a year later. Still, the modest pricing doesn’t obscure questions about Twitter’s profitability. At a roughly $11 billion valuation, Twitter would be worth more than Yelp Inc and AOL Inc combined. Facebook’s market value is now $128 billion. Twitter may be treading more carefully than Facebook did, but there’s still plenty to tweet about!

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