— This is the script of CNBC's news report for China's CCTV on November 5, Tuesday.
Welcome to the CNBC Business Daily.
Strong demand for Twitter's IPO has prompted the social media company to raise its price range to $23-$25. That was from the previous range of $17-$20.
Some 230 million people use Twitter worldwide, and the highly anticipated offering could raise up to $2 billion for the 7-year-old social network. This despite the fact that the tech wunderkind has yet to turn a profit.
2013 has been a watershed year for IPOs, with Reuters reporting that more than 178 companies have gone public year to date. This is the best year since 2007, and Twitter's debut is the most widely anticipated IPO since Facebook's launch in May last year.
But are Twitter's shares too expensive and could we see another dot-com bubble forming?
Here's what analysts told CNBC:
[Soundbyte on tape by Will Preston, Research Analyst, Renaissance Capital] From our research perspective, we saw significant upside from the current valuation before it raised its price range, and we think that even though it raised its range by 35%, that they really didn't take up a lot of the potential upside that institutional investors could see on the first day of trading.
[Soundbyte on tape by Kingsley Jones, Founder and CIO, Jevons Global] I guess it's a good sign that people want to pay a lot for something that doesn't make much money yet. We're in the trophy end of the market here in terms of IPOs. I wouldn't buy Twitter at these levels. I think it'll run, so if I were trading it, I probably would buy it and run with the stock. But I don't believe there's fundamental value there.
[Soundbyte on tape by King Lip, Chief Investment Officer, Baker Avenue Asset Management] I think Twitter really does have its act together, and I think that's why they waited so long to go IPO. I think Twitter really has invented a new media, new means of communication and marketing. And it goes beyond just selling ads. What Twitter offers really, is the ability to mine user behaviour and that's actually worth a lot of money. I do believe it's going to be a very succesful IPO. Honestly, I do believe the initial IPO range was on conservative side. And clearly now they're starting to wake up to reality - this is a highly anticipated IPO. So I wouldn't be surprised to see the price somewhere perhaps in the low-30s. There's a lot of brokerage quotes out already about the target price of Twitter and some of them are as high as in the mid-50s. So anything that's below $40, I think it's possible for investors to get, and I think you'll make a little bit of money on it.
Li Sixuan from CNBC's Singapore headquarters.