Morgan Stanley CEO Says Twitter to Have ‘Clean Opening’
“We’d like a cleaner opening,” he said on Bloomberg Television with Erik Schatzker yesterday. “For the market’s integrity, transparency, that would be a very good thing. I think we’ll get one.”
Morgan Stanley led Facebook’s IPO last year and is now one of the underwriters of Twitter, which is set to start trading on the New York Stock Exchange next week. Facebook’s debut on the Nasdaq Stock Market last year was marred by a software malfunction that delayed trading for the social network. Nasdaq OMX Group Inc. paid $10 million to settle regulatory charges that the error violated securities laws.
Facebook also bumped up the price of its offering before its debut. The shares later cratered and took more than a year to recover.
“I don’t think it was an underwriting issue, let me just leave it at that,” Gorman said in the interview.
Twitter is scheduled to set a final price for its shares on Nov. 6, and start trading the next day. Twitter had already gotten enough demand to sell all of its shares before it started taking orders. The San Francisco-based microblogging site is offering 70 million shares for $17 to $20 each, indicating it plans to raise as much as $1.4 billion.
Goldman Sachs Group Inc. (GS) is leading the offering, working with Morgan Stanley and JPMorgan Chase & Co.
To contact the editor responsible for this story: Pui-Wing Tam at email@example.com