Twitter Inc. filed to go public yesterday through an initial public offering without disclosing financial figures. The microblogging social media site did not also disclose its intended date of listing, according to a Bloomberg report.
Twitter made a confidentially filing with the US Securities and Exchange Commission to keep its sales and profit record before it would start trading to market investors. Bloomberg said the moves were done by Twitter to avoid the same pitfall as Facebook Inc. had when it went public.
The Facebook IPO hype had led the offering price at 107 times trailing its 12 month earnings. It was more expensive than 99% of all companies in the Standard & Poor's 500 Index during that time. Facebook then lost half of its company's valued after the USD16 billion IPO.
David Pakman, a New York-based partner at Venrock Inc. said by phone, "Twitter will do everything they can to avoid anything that looks like the Facebook IPO, both on the expectations front and the execution front. By the confidential filing, it will hopefully be able to keep expectations down a bit, and hopefully use a different pricing strategy than Facebook."
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