Twitter has raised the price range for its initial public offering to $23 to $25, signaling the company’s bullish outlook ahead of its trading debut on Thursday.
At the midpoint of that range, the offering would raise about $1.7 billion for the company. Twitter still intends to sell 70 million shares in its debut. At the high end of the new range, Twitter would be valued at $13.6 billion.
On Oct. 24, the company said that it planned to sell 70 million shares at $17 to $20 each. That was below what some analysts had expected.
The new price range also increases Twitter’s potential market value.
Coming ahead of pricing for the company, which is to take place on Wednesday, the boosting of the price range suggests Twitter is emboldened after its road show. Orders for Twitter stock from institutional investors were strong, and the offering was oversubscribed, according to people with knowledge of the matter.
The new price range also signals that Twitter is unconcerned it will make one of the same mistakes that hampered Facebook‘s I.P.O. last year, when the rival social media company priced its shares too aggressively, contributing to an initial fall in its share price.
