UPDATE 1-Twitter boosts IPO range; IBM alleges patent infringement
Nov 4 (Reuters) - Twitter Inc boosted the price range for its initial public offering to $23 to $25 per share on Monday, as the microblogging network now seeks to raise up to $1.75 billion.
The previous range was $17 to $20 per share.
Twitter also said it has received a letter from International Business Machines Corp alleging Twitter infringed at least three U.S. patents held by IBM.
With Twitter selling 70 million shares in the offering, Twitter would be valued at more than $13 billion under the new price range.
Twitter's IPO is fully subscribed, meaning it has attracted more than enough investor interest, according to a source familiar with the offering.
"This is not a surprise," said Kim Forrest, senior analyst Fort Pitt Capital Group, which manages $1.5 billion in assets. "The people underwriting the IPO have a responsibility to the company selling these shares to extract the highest price it can. It has to walk a fine line to make it attractive to investors."
Twitter management has been traveling the country over the last week, speaking with potential investors.
Twitter's IPO is set to price on Wednesday, with shares trading on the New York Stock Exchange on Thursday.
Goldman Sachs is leading the IPO, alongside Morgan Stanley and JPMorgan Chase & Co.