Glitches could lead Twitter to shun Nasdaq

 
Oliver Smith
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SOCIAL network giant Twitter is likely to favour a listing on the New York Stock Exchange (NYSE) over the Nasdaq on the back of glitches and problems with the exchange that marred Facebook’s initial public offering (IPO).

Confidence in the Nasdaq is low after the stock exchange has faced a spate of technical glitches in recent years. They included a three-hour shutdown on 22 August and glitches during Facebook’s IPO in May 2012 which led to the Nasdaq agreeing to pay $62m to traders affected by the incident.

Twitter revealed its intention to go public on Thursday in a 140 character tweet on the service,

“We’ve confidentially submitted an S-1 to the SEC for a planned IPO. This Tweet does not constitute an offer of any securities for sale.”

Analyst Max Wolff of Greencrest Capital said that although he had expected a Nasdaq listing, there is a growing possibility of Twitter choosing the NYSE.

The Nasdaq is ahead of the NYSE for tech IPOs since 2011 – 55 to 53, according to Nasdaq data – but this year the NYSE has won 17 (61 per cent) of the 28 tech IPOs.

Further details of Twitter’s IPO are still confidential, as allowed by the Securities and Exchanges Commission under the Jumpstart Our Business Startups act (JOBS) for companies with under $1bn in annual revenue.

Twitter was founded by Jack Dorsey in 2006, and since then it has grown to over 500m users.