Twitter Inc. filed an initial public offering with US regulators on Thursday. This was the company's first step towards the most anticipated debut in Silicon Valley after Facebook Inc's IPO last year.
Twitter's impending IPO ignited competition among the biggest names in Wall Street to manage the company's coming out party. According to a source familiar with the matter, Goldman Sachs was hired to be the lead underwriter for the public offering.
The company was said to have filed the IPO confidentially under a 2012 law. The law intended to help emerging corporations with less than USD1 billion revenue go public.
The debut of Twitter was smaller than that of Facebook. However, it would still generate a hefty amount in fees from the underwriting mandate itself. According to a Reuters report, assuming that the social network microblogging site would sell around 10% of its shares, underwriters could divide a fee pool of USD40 million to USD50 million. The assumption was based on an overall fee cut of 4% to 5%, said Freeman & Co.
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