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HK Equity Fund Twitter may be stretching the limits of the appetite for its IPO by hiking the price for each share to $23-25 from $17-20. According to Hong Kong-based HK Equity Fund, Twitter, the microblogging site on the cusp of a listing on the NYSE in a much-publicized initial public offering, has decided to increase the price it will ask for its shares by as much as 25%, which puts it on course to raise $1.75 billion if initial investor expressions of interest in the company are taken into consideration. According to the latest regulatory filing, the San Francisco-based website intends to offer some 70 million shares for $23 to $25 each, pointing to a market value in the region of $13.6 billion. Twitter had earlier anticipated finding buyers for its shares at $17 to $20 apiece. An HK Equity Fund technology sector analyst said, “Ignoring the market and media hyperbole for a moment, Twitter is losing money; it’s always lost money. We’re advising our clients to keep sensible and skeptical heads on their shoulders particularly at this juncture in the equity market’s price action and the worrying signs of seemingly insatiable appetite for anything and everything related to social media.” According to the Hong Kong-based investment boutique, Twitter may run the risk of repeating Facebook’s mistake during the run up to its farcical 2012 IPO when it raised the price of its offering to take advantage of perceived demand only to end up in a range that eventually exceeded that demand precipitating a rout which saw it lose half of its value within 6 months. “We’ve gone over the prospectus with a fine tooth-comb but we remain skeptical of Twitter’s ability to turn a profit any time soon,” concluded the HK Equity Fund analyst. About HK Equity Fund HK Equity Fund established a presence in Hong Kong in 1995. Today their Hong Kong office is their main hub in the Asia-Pacific region. All of HK Equity Fund’s business groups have operations in the city, making this their largest office in the region outside Australia. From Hong Kong they offer corporate finance and advisory, institutional cash equities and research, equity derivatives and structured products, debt financing and funds management, and environmental financial products, futures, metals OTC hedging and fixed income trading services. For more info contact: HK Equity Fund Limited 28/F, 8 Wyndham Street, Central, Hong Kong Email Address: info@hkequityfund.com http://www.hkequityfund.com +85258084873
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