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Grey market trading in Twitter predicts shares to double on first day of official trading

Financial spread betting firm IG has predicted that shares in Twitter will double on the first official day of trading.

Grey market trading rightfully predicted the uplift in Royal Mail shares

Last week trading in the unofficial grey market, where financial gamblers can place bets on the eventual price, estimated Twitter's value to be as high as $30bn on day one, said IG.

With Twitter setting a price range at between $17 to $20 per share, valuing the group at $11.1bn, sharp selling has created an estimate of $22.6bn.

IG analyst Alastair McCaig said this suggested that the social network is "underplaying their hand pretty aggressively". Adding that the shares in Twitter looked even more undervalued than those in Royal Mail according to the grey market activity, which correctly predicted sharp rises in Royal Mail share on day one of official trading.

Set to join the stock market on 14 November as 'TWTR' the floatation is the biggest by a tech company since Facebook last year. An investor roadshow is set to begin next Monday to convince would-be shareholders of its longevity.

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