The initial public offer of shares in Twitter is generating such a high levels of interest with traders in the 'grey market'. In the 'grey market', the shares of a company are traded even before they are officially listed on the bourse.
The main concern though is repeating the first day flop experienced by Facebook just last year.
The IPO of Twitter was formally announced through a tweet last week. Conservative estimates place the volume at USD10 billion. Early trading in derivatives connected to the IPO shares place the estimated valuation would reach USD13.15 billion.
The 'grey market' had long been a gauge for market interest for a specific share before being officially offered through a public stock exchange. Most of the trading is done through contracts of difference or CFDs, which are derivatives that pay out depending on how close they are to the final figure. Now, traders are purchasing CFDs in Twiiter with a spread between USD15.04 billion and USD16.04 billion. This is a clear indication that 'high levels' of buyer interest on the shares.
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