Twitter launched its IPO recently. To avoid suffering the dramatic fell Facebook experienced, twitter choose to set it’s the price to a range between $17 and $20 per share. Even though higher price can help the company gain more money, if it is set too high, there would be short of the demand for stocks. And the market is going to step in and press the price down, which is exactly what happened to Facebook in 2010.

Moreover, when Facebook announcing its IPO price, most investors in the market were still questioning about the ability of social media for making profit. Now, the market has already witnessed the great financial potential for this industry. Especially for twitter, investors hold great faith in its potential to provide a significant return after first trade.

For those companies seeking to increase their capital, there is no better choice than launching IPO. However, to have a successful IPO, company needs carefully evaluate its values and set its price slightly below. After, it must convince its investors of its ability to maximize values by properly addressing all the concerns investors have and proving its capability to outperform all its competitors.