It is one of this year's most anticipated initial public offerings or IPO. Mocro blogging site Twitter said on Tuesday said its shares will trade on the New York Stock Exchange under the symbol TWTR.
Though Twitter Inc has not said when it will list publicly, the shares are expected to begin trading from mid-November, according to reports.
Twitter has managed a "buy" rating on the stock even before it lists. SunTrust Robinson Humphrey analyst Robert Peck suggested Twitter could float at $28-$30 per share, and said it could reach $50 within a year.
Many Indian investors would have an eye on the stock, which will be sold through the New York Stock Exchange. There are about 20 million Indians in Twitter's global user base of around 230 million, according to a joint study by market research firm IMRB International and the Internet and Mobile Association of India.
Indian investors can invest in the Twitter IPO via an overseas trading account. Some domestic brokerages offer the facility to invest in various stocks that are traded on US exchanges.
Under the Liberalized Remittance Scheme of Reserve Bank of India, resident individuals are allowed to invest up to $75,000 in overseas assets, including stocks. This limit was earlier at $200,000, which was slashed in August this year by the RBI as it cracked down on overseas outflows to stem the rupee's decline.
If Indian investors don't get their hands on Twitter shares in the initial public offering, they can buy the shares in the secondary market once the stock gets listed.
In the US market, many exchange traded funds (ETFs) like Global X Social Media ETF and First Trust US IPO Index ETF focus narrowly on IPO stocks. Indian investors can also seek exposure to these ETFs.
For Indian investors who want to take the mutual fund route, there are many funds in the Indian market that give a direct exposure to US stocks. However, these mutual funds would be investing in a basket of US stocks, not just Twitter.
But investors must bear in mind that buying US stocks will expose them to currency risks.
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