Twitter Files Draft Version of S-1 Document, Plans IPO
Analyst projects Twitter's current value at $15 billion to $16 billion and that an actual IPO could happen by Thanksgiving.In the most anticipated IT initial public offering event since Facebook's in May 2012, Twitter filed a confidential version of S-1 documentation Sept. 12 for an IPO on a date to be named later. The confidential filing is a relatively new provision enabled by the JOBS (Jumpstart Our Business Startups) Act of 2012. It is a draft registration statement, a precursor to the formal IPO S-1 filing. Under the JOBS Act, companies with less than $1 billion in revenue are allowed to file secretly with the U.S. Securities and Exchange Commission (SEC) before they release their plans. Twitter, which claims to have more than 200 million regular users and handles an estimated 200 million to 250 million tweets per day, becomes by far the highest-profile company to take advantage of these new confidentiality provisions. The Twitter S-1 will become public record—if Twitter indeed chooses to go through with the filing—after all stipulations from the SEC are satisfied and if the company deems investment prospects are strong enough.
Goldman Sachs will be the lead underwriter for the IPO when it happens. Securities analyst Michael Pachter of Wedbush Securities told Bloomberg News that he expects to see a formal S-1 filed "right around Halloween, and I think you'll see an IPO right around Thanksgiving (which is on Nov. 28)."