Twitter announced that for its initial public offering it valued the company at $10.9 billion and would look to raise $1.6 billion.
The numbers suggest that Twitter is looking to avoid mistakes that Facebook made during their IPO, Reuters reports.
The modest valuation is an attempt to keep stock from dropping, which happened to the other social media website. Twitter also said that it would sell 70 million shares for $17 to $20. The social media site is expected to begin public trading on Nov. 7, a day after setting the stock price.
Sam Hamadeh of private company research firm PrivCo said, "It's conservative and likely going to be raised as they start the road show at least once if not twice." Hamadeh continued, "The size of the offering is also a bit small."
He suggested they may "raise the price once they gauge investor demand. Raising both the price and the size was Facebook's fatal mistake."
According to The New York Times if the IPO goes well, the company would be four times bigger than AOL, but nothing compared to Facebook.
Ahead of the Nov. 7 date, Twitter executives will travel cross-country for meetings to convince people to buy into the company.
image: Twitter's Official page