Individual investors got burned on Facebook (FB), but because a lot fewer of them know and use Twitter, they’re much less interested in buying shares of the next big initial public offering in tech.
It sounds like trouble for Twitter’s IPO, which is expected to be priced after the market closes on Nov. 6. So why then did Twitter just raise its price range for the offering to $23 to $25 a share from $17 to $20?
Because healthy demand from the professionals who manage trillions of dollars of mutual funds, hedge funds and pension funds likely will help the IPO succeed. And the combination of strong institutional interest and relatively weaker retail buying in fact may help Twitter shares have a smoother long-term run.
Underwriters of the IPO encountered strong interest from institutional managers last week, after Twitter executives went on the road to present their financial data and strategic plans in closed-door private sessions for big investors, Bloomberg reported.
In contrast,Read More »from Good News for Twitter IPO: Small Investors Are Skipping It