ref="http://www.cityam.com/company/twitter">TWITTER will be valued at a modest $11bn (£6.8bn) for its initial public offering (IPO) next month.
The valuation comes in at the lower end of the $12bn to $15bn valuation that has been expected since the company first announced its intention to float last month.
The social network set a price range of between $17 and $20 a share in a securities and exchange commission (SEC) filing last night.
Around 80.5m shares, or 13 per cent, of the company will be offered raising up to $1.6bn for Twitter during the float which is expected to happen on 7 November.
Twitter will gauge investors willingness to buy into a business that has yet to turn a profit when the company begins a series of investor events starting on Monday and finishing the day before its debut.
Analysts expect the valuation of the most anticipated technology IPO of the year to rise during the investor roadshow.
Early investors in Twitter are not believed to be looking for a quick exit with SEC filings revealing modest sale intentions.
Twitter’s chief executive Dick Costello plans to reduce his share holdings from 1.6 per cent to 1.4 per cent, while Twitter co-founder Jack Dorsey will lower his stake from 4.9 per cent to 4.3 per cent.
The float, which Twitter could price as high as $20 a share, would value Dorsey's current holdings at $469m.
Twitter also announced yesterday it has hired NBC News chief digital executive and former New York Times executive Vivian Schiller as its head of news after the company posted a job listing for the position last spring.