Yesterday the news broke that Twitter is going to be filing for an IPO (Initial Public Offering) in 2014.
According to Rao, Twitter is currently trading at around $18-$19 on the private market and he expects that it will price slightly higher than that when it does go public, thanks in part to growing confidence in Facebook and the Internet IPO market in general.
“I would think that given the whole momentum behind them, a good stock market, overall positive sentiment with Facebook, [they will price in the] low-to-mid 20’s per share,” Rao told Mashable. He expects the company’s overall valuation to be between $10.5 billion to $11 billion.
That estimate, while a bit lower than other reports Thursday, is roughly in line with previous estimates leading up to the IPO. Bloomberg reported in May that Twitter was valued at $10 billion based on an investment from GSV Capital.
As for how much revenue Twitter generates, the stealth S-1 does provide at least one clue. Twitter took advantage of the JOBS Act passed last year which allows “emerging growth companies” to file for IPO without disclosing their finances until three weeks before the company’s leadership start making their presentations to investors and analysts (an event known as the road show.) In order to qualify for this tactic, a company must make less than $1 billion in revenue in the most recent fiscal year.
Here is a look at the State of Twitter in 2013