Twitter shares on loan up, borrowing fees down
21 November 2013 London
Image: Shutterstock
Following its IPO on 7 November, the latest data shows that the amount of Twitter's shares on loan has risen steadily, whilst the fees to borrow are down.
David Lewis, senior vice president of Astec Analytics, SunGard鈥檚 capital markets business, said: 鈥淲e are seeing around 15.3 million shares on loan as of right now, up a couple of hundred thousand since yesterday. Overall, balances on loan have grown steadily since the IPO but with increasing supply in the market the fee levels have quickly come down to indicate Twitter being a warm, rather than hot, stock to borrow.鈥�
In a statement, DataLend, the securities finance data services division of EquiLend, said that it is seeing 16.5 million shares of Twitter are out on loan as of Wednesday, 20 November, representing a utilisation of 62 percent given that there are more than 26 million shares in inventory.
"Fees to borrow have declined by more than 80 percent since lending and borrowing of the stock commenced following the firm's IPO, likely due to a steady increase in total inventory shown on DataLend since then."
Shares in the company were filed originally with a range of $17 to $20 per share. The offering was raised to $23 to $25, and then finally priced at $26. The company sold 70 million shares at this price.
On going public Twitter issued a short statement emphasizing the importance of people to its business, and welcoming its users to become owners of the company.
David Lewis, senior vice president of Astec Analytics, SunGard鈥檚 capital markets business, said: 鈥淲e are seeing around 15.3 million shares on loan as of right now, up a couple of hundred thousand since yesterday. Overall, balances on loan have grown steadily since the IPO but with increasing supply in the market the fee levels have quickly come down to indicate Twitter being a warm, rather than hot, stock to borrow.鈥�
In a statement, DataLend, the securities finance data services division of EquiLend, said that it is seeing 16.5 million shares of Twitter are out on loan as of Wednesday, 20 November, representing a utilisation of 62 percent given that there are more than 26 million shares in inventory.
"Fees to borrow have declined by more than 80 percent since lending and borrowing of the stock commenced following the firm's IPO, likely due to a steady increase in total inventory shown on DataLend since then."
Shares in the company were filed originally with a range of $17 to $20 per share. The offering was raised to $23 to $25, and then finally priced at $26. The company sold 70 million shares at this price.
On going public Twitter issued a short statement emphasizing the importance of people to its business, and welcoming its users to become owners of the company.
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