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NYSE tests systems ahead of Twitter IPO

By CNN Staff
updated 10:02 PM EDT, Sat October 26, 2013
STORY HIGHLIGHTS
  • NYSE wanted to avoid a repeat of Nasdaq's Facebook bungle
  • Only a handful of people were on the trading floor
  • The NYSE says the test was a success
  • Twitter is preparing for a highly anticipated IPO

New York (CNN) -- The New York Stock Exchange conducted an electronic systems test Saturday in preparation for Twitter's highly anticipated initial public offering.

Only a small number of people were on the trading floor for the test, which NYSE spokesman Eric Ryan called successful. The exchange tested connectivity and running data and did a simulated auction.

"We're grateful to all the firms that chose to participate. We are being very methodical in our planning for Twitter's IPO, and are working together with the industry to ensure a world class experience for Twitter, retail investors and all market participants."

The date of the IPO hasn't been announced.

In a regulatory filing earlier this month, Twitter set a preliminary price range of $17 to $20 per share for its IPO, though that price could change. Twitter will have to set its final price the night before it begins trading.

The IPO price, however, is really meant for institutional investors such as Goldman Sachs and Morgan Stanley, which can purchase shares directly from the Twitter IPO's underwriters.

Regular investors will get their first chance to buy Twitter the following day, when shares will begin trading on the New York Stock Exchange under the ticker "TWTR."

Twitter's choice to go with NYSE was considered a snub to the tech-heavy Nasdaq exchange, which caught major heat for the massive fumbling of Facebook's IPO last year.

Facebook was the most anticipated IPO of 2012 and one of the largest ever for a tech company, but an array of problems and misjudgments led to a botched IPO in May, and the company's stock plummeted.

The initial offer price of $38 was too high, too many shares were issued, its opening day was marred by Nasdaq's technical glitches and underwriter Morgan Stanley was fined for improperly influencing share sales.

Facebook's stock has since recovered and is now trading above $50, helped in large part by its swift success in selling ads on mobile devices.

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