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Twitter close to choosing NYSE for IPO

Twitter is reportedly close to plumping for the New York Stock Exchange [NYSE] to launch its initial public offering [IPO].

Sources quoted by Reuters state that Twitter is expected to debut with the NYSE instead of Nasdaq leaving some commentators to speculate the reason it’s choosing NYSE is due to errors when Facebook launched its IPO with Nasdaq.

David Weiss, an analyst at Aite Group LLC, told Bloomberg that Twitter choosing NYSE would “fall on the heels of some very bad mojo for Nasdaq”.

Spokespersons from Twitter, Nasdaq OMX Group and NYSE Euronext declined to comment on the speculation.

Twitter announced on its own microblogging site that it had filed with regulators on 12 September and under the Jumpstart Our Business Startups Act it can file confidentially as Twitter makes less than $1 billion [£632.5 million] in annual revenue. It’s estimated that Twitter will be valued at $15 billion [£9.3 billion]. The IPO will, by itself, net the social networking giant some $1.5 billion [£940 million].

Nasdaq was widely criticised for technical problems and questionable decisions during Facebook’s IPO that saw the former pay $10 million [£6.25 million] to the US Securities and Exchanges Commission [SEC] to settle charges linked to the errors. Nasdaq also formed a $62 million [£38.7 million] fund to help firms that were out of pocket following the Facebook IPO, and all of this put together has, according to The Street, persuaded Twitter to go with the NYSE.

Facebook shares, which started trading at $38 [£24] a share, raised around $16 billion [£9.8 billion] from the IPO before the price plunged by almost 50 per cent – at one point dipping to $21 [£13.25]. In recent months it has rebounded to its IPO levels in the wake of Mark Zuckerberg successfully turning round Facebook’s mobile advertising fortunes.