Twitter Prices IPO at $26 a Share in $1.82B Offering

NEW YORK ( TheStreet) -- Twitter is pricing its initial public offering at $26 a share. The San Francisco-based company sold $1.82 billion in shares, or just over 12% of its outstanding stock, in an offering that gives the micro-blogging site a valuation of roughly $14.2 billion.

As with its initial IPO announcement, Twitter took to its own network to make the final pricing of its offering public.

Previously, the company had planned to list its shares at between $23 and $25 a share, valuing the company at up to $13.6 billion. Twitter's listing contrasts with Facebook's (FB) blockbuster $16 billion May 2012 offering, which valued the social network at nearly $100 billion.

On a fully diluted basis to include stock option grants, Twitter will be valued at over $18 billion. Media reports indicated Twitter's IPO was oversubscribed and closed as early as Wednesday. 

The Chicago Board of Options Exchange said on Twitter that option contracts for the company's stock will be available Nov. 15, contingent on a completed share listing Thursday.

In a Wednesday initiation of their coverage of Twitter's stock, RBC Capital Markets analyst Mark Mahaney gave the burgeoning internet powerhouse a 12-month price target of $33 a share.

Jim Cramer, founder of Thestreet, has set some hard and fast rules for investors given his expectation that this will, indeed, be a hot IPO. Cramer believes Twitter has a path toward revenue growth and profitability that investors can trust, however, at some point investors may need to draw a line on valuation.

Investors should balk at Twitter shares at a market capitalization of over $20 billion, Cramer said on Wednesday. He cautioned investors from buying Twitter shares in the after-market or at a price higher than $28.

If you liked this article you might like

Apple Has Been the Best Stock to Own Since 1926 (Yes, 1926)

LIVE BLOG: Viewers Take a Knee as NFL Ratings Fall in Week 3

Stocks Hold at Lows as Apple's Selloff Spills Over to Broader Tech Space

What Trump's Nasty War With Sports Has to Do With Investing

Apple Named the Most Valuable Brand in the World, Adding to Its Luster