The Most Important IPO of 2013

The Twitter IPO Will Likely Be Major News In 2013

Looking forward to the 2013 First Public Offering (IPO) calendar, the Twitter IPOis probably going to occur in 2013 and will likely be one of the biggest IPOs of that year. The Twitter IPO will be a widely expected and sought after IPO in 2013. Depending on which other companies go through IPOs in 2013, the Twitter IPO has the potentiality to be the most important IPO of 2013.

With the monster Facebook IPO that’s on tap for 2012 towering over the 2012 IPO market, Twitter is in no rush to hit the IPO market in 2012 with the Twitter IPO. While there aren’t any concrete signs in early 2012 that the Twitter IPO will happen in 2013, there were some current moves by Twitter that suggest that the company is moving towards going public thru an IPO by 2013. During 2011 Twitter started a transition in its company governance structure and management team that indicate that it is taking the steps obligatory to become a in public traded-company. Lots of the people hired for their new managerial team have experience working with public firms.

Why The Twitter IPO Will Probably Occur In 2013

While there appears to be no pressing monetary need for the Twitter IPO to happen in 2013, since the company appears to be on sound fiscal footing (which some observers question) and does not seem to need to straight away raise capital to fund operations, there are a number of factors that can cause the Twitter IPO to occur in 2013.

First off , the stock market is experiencing a new wave of Internet IPOs, the largest since the 1990s, with Net sites like LinkedIn and Groupon completing successful high-profile IPOs in 2011, and Facebook prepared to IPO in 2012. If Twitter has any objectives of going public via a Twitter IPO, then they have to get their act together and bring their IPO to market while the marketplace for Internet IPOs is hot.

2nd, the United States Security and Exchange Commission (SEC) requires personal firms with over 500 non-public backers to make clear finance info that public corporations must communicate. While it is confusing when Twitter will have more than 500 private investors, trading in private Twitter stock through sites such as SecondMarket and sales of Twitter stock to personal stockholders could cause Twitter to get to the 500 personal investor threshold. Reaching this threshold generally causes corporations to quickly accelerate their IPO plans, as personal companies wish to exploit the advantages of being a public company when they are required to reveal the same finance info as public firms.

At this early juncture, it is too early to speculate about what price the Twitter IPO might occur at and what the valuation of Twitter may be after the Twitter IPO. In the final analysis whether there's a Twitter IPO in 2013 and what valuation will be given to the Twitter IPO by the investment community will depend on how Twitter and its Internet peers do over the following year and how hot the Web IPO market is in 2013.

Leroy Simon looks ahead at the hot stock market news. Although he takes a look at all stocks generally, he concentrates on initial public offerings.

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