Twitter has valued itself at a modest $11 billion (£6.8 billion) ahead of its stock market debut, a lower price than predicted by many analysts. The firm expects to raise up to £1.6 billion (£1 billion) from the initial public offering, filings reveal.
The social media giant plans to sell 70 million shares (around 13 per cent of the company) priced between $17 (£10.50) and $20 (£12.35), which would raise as much as $1.4 billion (£850 million).
The figure could then rise if underwriters choose to sell an extra allotment of 10.5 million shares.
The valuation places Twitter's worth higher than AOL and Yelp combined, but is dwarfed by Facebook which is now worth $128 billion (£80 billion). Google is valued at $342 billion (£211 billion) and Apple at $483 billion (£300 million).
The conservative valuation could be an attempt to avoid a crash in share price value that Facebook suffered after its IPO.
There does however remain concerns over Twitter's profitability after previous IPO filings revealed a run of losses.
"The fact that the valuation is lower than expectations, I think was smart by the underwriters. I think it will help the pop," said Michael Yoshikami of Destinational Wealth Management.
"But in the end, even for $11 billion, the question is can they come up with earnings to substantiate that number? And it's unclear that they're going to be able to do that."
Almost 85 per cent of Twitter's revenue comes from advertising.
"They're trying to price this for a very strong IPO, ideally creating the conditions for a solid after-market," said Pivotal Research Group's Brian Wieser, who had valued the firm at $19 billion (£11.75 billion).