By David Wilson
Nov. 6 (Bloomberg) -- Twitter Inc.’s increase in the
projected price for its initial public offering is in keeping
with this year’s performance of newly public companies in the
U.S. stock market.
As the CHART OF THE DAY shows, the Bloomberg IPO Index has
risen 41 percent this year and is beating the Standard & Poor’s
500 Index by 18 percentage points. Both these figures would be
the highest for a full year since 2009, when the current bull
market in stocks began.
Twitter has “the wind at its back, definitely,” Justin
Walters, co-founder and managing partner at Bespoke Investment
Group LLC, said yesterday in an interview. “IPOs are healthy
right now, and that’s what you want to see.” The Harrison, New
York-based research and investment firm put out a blog posting
yesterday with a similar chart.
The IPO indicator, consisting of companies that have gone
public within the past 12 months at a market value of more than
$50 million, set records six times in the last three weeks. The
most recent mark occurred two days ago. Yesterday, the index
dropped 0.1 percent to 2,915.60.
Twitter’s first public stock sale is scheduled for pricing
today. The social-media company wants to sell shares for $23 to
$25 each, more than an earlier estimate of $17 to $20.
The sale would raise $1.75 billion at the $25 price, and
may turn out to be more lucrative for the San Francisco-based
company. The final price may exceed the increased range, two
people with knowledge of the matter said.