Twitter proves expensive to borrow 18 November 2013London Reporter: Georgina Lavers
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The first securities lending trades in Twitter have been revealed by Markit.
Social network Twitter floated on the New York Stock Exchange on 7 November. A week after its IPO, Twitter jumped 73 percent after raising $1.8 billion at $26 per share—significantly above its initial $17 to $20 range.
Markit reported that there were 3.8 million shares on loan—around 5 percent of the free float of 80.5 million shares, using Bloomberg’s definition of freefloat.
A spokesperson added that shares are expensive to borrow, at an annualised fee of between 10-15 percent.
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