Twitter IPO: Two More Top Banks Swoop In

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Twitter has added JPMorgan Chase (NYSE:JPM) and Morgan Stanley (NYSE:MS) to the roster of banks assisting its widely anticipated initial public offering, people familiar with the matter told The Wall Street Journal. The two banks join the team under Goldman Sachs (NYSE:GS), which is the lead firm for the offering. This is the same team of banks that handled the Facebook (NASDAQ:FB) IPO, although Morgan Stanley was the lead bank in that case.

Earlier this week, news circulated that Twitter will list on the New York Stock Exchange and not on the Nasdaq. The social media platform, which tweeted about its confidential S-1 filing on September 12, is expected to sell between 50 million and 55 million shares priced between $28 and $30, raising between $1.4 billion and $1.65 billion. Such a sale would value the company somewhere between $15 and $16 billion, higher than the $10 billion estimate that was tossed around a few months ago.

These accomplishments — earning the listing rights and working on the IPO — are not necessarily significant financial windfalls for the companies involved. It’s not a perfect analogy, but initial public offerings are to Wall Street as blockbuster movies are to Main Street: a tremendous amount of hype typically surrounds both events. Working on an IPO as widely watched as Twitter is as much a boost to the reputation of those involved as anything.

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