Twitter IPO: social network aims to raise $1bn
Analysts say steady growth will drive the social network's value above $11bn - even though it's yet to make a profit
TWITTER has set out plans to raise $1bn through share sales, leading analysts to predict that the social network could soon be worth over $11bn despite never having made a profit.
In documents filed with US regulators the company revealed that revenue at the company has grown from $28m in 2010 to $317m in 2012. In the first half of 2013, it posted revenues of $253.6m but made a loss of $69.3m.
Brian Wieser, an analyst at Pivotal Research Group told Reuters that the absence of profit is a "non-issue" as the company is still growing steadily. "It would have been a surprise if they had a profit," he said, as the company only ramped up efforts to sell advertising in 2010.
Twitter's $1 billion target is likely to rise as the company talks to potential investors.
Commentators have suggested that the company could be valued at between $11bn and $15bn when it floats next month. It has not yet confirmed whether it will trade on the tech-orientated Nasdaq or the New York Stock Exchange.
The IPO is the most hotly anticipated technology flotation since Facebook's debut in 2012.
Twitter, which now boasts 218m monthly users and 500m tweets sent per day, will hope to avoid the setbacks suffered by its rival. At its IPO, Facebook was valued at $38 a share but sank to a low point of $17.73 in September 2012 and only climbed back through the $38 barrier in August this year. ·