Twitter Brings Low-Key IPO Roadshow to New York

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Oct. 29 (Bloomberg) -- Bloomberg’s Cristina Alesci and Bloomberg Industries’ Paul Sweeney discuss Twitter’s IPO roadshow and the different approaches it’s taking to attract investors. They speak on Bloomberg Television’s “In The Loop.”

The stock as they meet with investors.

With all the publicity, do they need to drum up demand?

Cristina alesci tracking developments and with us for a look at the big difference.

Tell us how the roadshow is going so far.

They are not wanting for coverage of the ipo.

No, they are not.

Kicking things off pretty low key in the mid-atlantic yesterday.

A pretty low-key meeting, group meeting yesterday.

A room that had a capacity of 25 people.

A stark difference from facebook . keep in mind, two kinds of meetings on the road.

Group meetings and then one-on- one meetings with very large investors like t. rowe price.

Those are the meanings that are the important ones.

Those produce actual orders that allow bankers to go ahead and start distributing shares and putting a book together.

Those are the meetings we will pay most attention to to see how investors are reacting to the presentation by management.

We will see on that front.

We all go back to the facebook ipo in roadshow here yet you have been comparing them.

What is different about them?

The biggest difference is twitter is much earlier in the growth curve ursus facebook.

One day investors will see is twitter is not hospitable.

Still spending money.

Early in the growth curve.

I think what investors will focus on here is investors generally feel very good about the social media space within the internet overall and certainly twitter is a great name over there.

They will look at the domestically and internationally and then the revenue growth.

Then we see good metrics there.

I think social media investors in particular.

A lot of questions about profitability or how they generate money here in the u.s. and overseas.

It is not a profitable company at.

Investors are not going to pay attention to the prophet number.

They will look at revenue, especially how it compares to what the company is spending.

What will be essential is the confidence they have and the management team.

That is what will resonate with investors.

This is an early stage company.

Not so much about the numbers, but about how confident they are that management can take this company to the next level?

I remember during the facebook ipo, i would talk to people who would say managers or fund managers would save our clients are asking what is facebook?

Why do i need it?

Do you think there are people that have the same questions about twitter?

Investors are very different from the twitter user.

Probably about a 20 year age difference.

I think there will be a tremendous amount of retail interest in the story.

I think they are pretty up to speed on the twitter story and growth prospects.

Individual investors know the name.

A great read name.

A lot of the retail brokers around the country are getting a lot of phone calls.

Saying when is this deal coming?

We want a piece of it.

One of the challenges for the underwriters and the company is to make sure they get a good gauge of demand for the ipo execution itself and for the aftermarket buying.

I think they're coming out a lower valuation to what facebook came out.

A couple of other things they are doing to help investors.

Single class stocks.

Individual investors look at the same voting rights as some of the founders.

There is no founder stock being sold in the ipo.

No insider selling.

That was a big issue for facebook.

They do not have that at twitter.

Cristina alesci on twitter, thank you.

Moving and shaking, the top-

This text has been automatically generated. It may not be 100% accurate.


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