Google IPO News
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Reuters is reporting:
In a filing with the Securities and Exchange Commission, Google estimated it would sell its shares for between $108 and $135 through an online auction expected next month.
That price range would mean that the IPO could raise as much as $3.3 billion. It would also value the Mountain View, California-based company more richly than its closest rival, Yahoo Inc. and mark its emergence as a public company larger than old-economy stalwarts like Ford Motor Co. and McDonald’s Corp.
At the projected pricing, Google would rank as the eighth-largest IPO by a U.S. company, according to Thomson Financial. It would also be the highest-priced offering on a per-share basis since Genentech’s July 1999 IPO.
Google will be listed on the NASDAQ as GOOG. There is an interesting thread about Google’s Upcoming IPO over at WebmasterWorld. In this thread there is a link to Google’s SEC IPO filing. It’s an interesting read for those that might want to invest in Google.
People might be curious as to why Google is pricing its shares so high. After some discussion with an investment banker friend of mine it basically boils down to eliminating “the flop”. If Google were to low ball their IPO share prices there would be a mad dash to rake up as many shares as possible. This mad dash would rapidly increase the price of the shares then as the people who are looking to turn a fast buck sell their shares as quickly as they bought them the share price would plummet. Thus, “the flop” (remember the “dot-com boom”). The underwriters of Google’s IPO are looking to make it as efficient as possible by putting the most money in Google’s pockets as opposed to Google’s potential short-term investors’ pockets. This is good for Google and the stock markets. Google will have more money to better its services and offerings and Google’s IPO won’t start another dot-com boom.
If you’d still like to get in on Google’s IPO then keep an eye on the Google IPO page. But let’s keep in mind that on the afternoon of 26 July Google was feeding 503 errors to its visitors. Not exactly the greatest thing to happen the same day you announce the details of your IPO.
