Twitter Files S-1 With SEC
Earlier today, Twitter (via their official Twitter account, of course) announced that they had filed a S-1 with the SEC.
Here is what Twitter said via their official Twitter account:
"We've confidentially submitted an S-1 to the SEC for a planned IPO. This Tweet does not constitute an offer of any securities for sale."
Under the terms of the recently passed JOBS Act, Twitter doesn't have to reveal any public details about its financial performance until 21 days before their investor roadshow begins. Twitter qualifies as an "emerging growth" company, which means that it is able to confidentially "submit a draft registration statement for confidential, non-public review."
An "emerging growth" company, according to the SEC, is a company that had total annual growth revenues of less than $1 billion during its most recently completed fiscal year.
So, we currently don't know anything about Twitter's revenues/profits, etc., other than the fact that they did less than $1 billion in revenues during their most recently completed fiscal year.
In what is almost certainly not a coincidence, Facebook recently traded at a new all-time high. Investors soured on technology IPOs after the Facebook fiasco, but they seem to have gotten over it now that Facebook is trading at $45 per share.
Twitter is expected to fetch a significantly smaller valuation than Facebook - according to reports, Twitter will likely be valued at around $20 billion when it officially opens for trading.
Goldman Sachs has landed the role as lead underwriter for the Twitter IPO.
Filed under: General Market News