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Twitter set a price range of $17 to $20 per share for its much-anticipated initial public offering and says it could raise as much as $1.6 billion in the process.
The company said in a regulatory filing Thursday that it is putting forth 70 million shares in the offering. If all the shares are sold, the underwriters can buy another 10.5 million shares.
At the $20 share price, Twitter's market value is around $12.5 billion. That's based on 625.2 million outstanding shares expected after the offering, including restricted stock units and stock options.
Twitter's valuation is relatively conservative - some analysts had expected the figure to be as high as $20 billion.
The caution shows that Twitter learned from Facebook's rocky initial public offering last year. Rather than set expectations too high, Twitter is playing it safe and will very likely raise its price range closer to the IPO, and thus fuel demand.