Goldman Sachs are believed to have secured the lead role in Twitter’s stock market launch, with JP Morgan Chase and Morgan Stanley also expected to play their part as Twitter looks to grab a significant line of credit ahead of the IPO.
Twitter is allegedly seeking credit of up to $1 billion to strengthen its position pre-IPO, with the company perhaps look to add to its recent run of acquisitions, which included mobile advertising network, MoPub. Facebook used an $8 billion credit line ahead of their IPO, while Zynga, which is perhaps closer to Twitter in terms of relative size, received $1 billion of credit.
Thanksgiving falls on November 28th, 2013.
While Twitter has not commented on the matter, it seems probable that they would want to avoid a repeat of Facebook’s botched IPO, which was widely-criticised, and would rather see the psychologically-pleasing first day “pop” in their stock price rather than try and grab as much cash as possible (and disappointing investors). This extra capital would go a long way to improve their standing before the launch.
(Source: New York Post.)