SEO

Google IPO May Come Next Week

Google IPO May Come Next Week

Rueters, CNN, and the Wall Street Journal are all spreading rumors that the Google IPO bidding will actually take place next week.

Rueters reports that Google Inc. may conduct its eagerly-awaited initial public offering as soon as next Tuesday, August 10, according to a published report Wednesday, which did not cite a specific source.

The company’s planned mid-August IPO, which is being conducted through an auction process, might raise as much as $3.3 billion.

Wall Street Journal: Some institutional investors, including mutual funds and hedge funds, are reluctant to bid a high price for the IPO, which may be starting between $108 and $135.

More from Rueters:

The funds are concerned that Google shares might fall soon after the IPO, or that some Google executives, employees and early investors might begin to unload some shares as soon as 15 days after trading begins, an unusually brief IPO “lockup” period, the paper reported.

Some investors believe that demand for Google shares won’t surge until the stock falls to about $100 per share, below the $108 to $135 per share that Mountain View, Calif.-based Google has estimated it is worth, according to the Journal.

The high end of the range would value Google at more than $36 billion.

“The price tag is just very expensive,” Jack Ablin, chief investment officer at Harris Trust & Savings Bank, told the paper. “I expect the process to go pretty well, but the stock to trade down.

Comments are closed.

5 thoughts on “Google IPO May Come Next Week