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Google Lowers IPO Price, Limits Shares

Google Lowers IPO Price, Limits Shares

Google’s IPO wasn’t as popular as expected, apparently not as many fish bit at the Dutch Auction bait. Google will be lowering its estimated price range to between $85 and $95 per share, down from its earlier prediction of $108 and $135 per share which was recommended tho those who bid through auction closing last night.

According to the AP, Google also said the number of shares available to the public will be lowered as existing holders will now only sell 5.5 million shares, down from about 11.6 million. Google itself will sell 14.1 million shares as originally planned. The change makes a total of 19.6 million shares available, which is a decrease of about 6.1 million shares. The action should help increase the per-share price because the overall supply of shares has decreased.

Google sent an e-mail notice out early Wednesday mornign to people who had registered to bid in its unusual auction that will determine the ultimate IPO price. Here is the transcript:

Please be advised that the prospectus for the offering of Google’s Class A common stock will be amended to change the estimated offering price range and the number of shares to be sold in the offering. The offering price is now expected to be between $85 and $95 per share. As originally planned, Google expects to sell 14,142,135 shares of Class A common stock in the offering. However, in view of this new price range, the selling shareholders are reducing the shares they expect to sell to approximately 5.5 million shares, yielding a total offering of approximately 19.6 million shares. In addition, the selling shareholders have granted the underwriters the right to purchase approximately 2.9 million additional shares of Class A common stock at the initial public offering price to cover over-allotments.

Google and the underwriters requested that the Securities and Exchange Commission declare the registration statement effective on Wednesday, August 18, 2004 at 4:00 p.m. (Eastern Daylight Time). Holders of bidder IDs will be sent a notice of effectiveness once the registration statement has been declared effective. Google and the underwriters expect to close the auction when the registration statement is declared effective.

Google plans to file an amendment to the registration statement Wednesday morning. Holders of bidder IDs will be sent a notice of amendment to the registration statement when it is filed, at which time you will be able to obtain a copy of the updated prospectus from If you have submitted a bid, you should access that prospectus and carefully reconsider your bid(s). Please note that placing a bid does not guarantee that you will be allocated shares in the offering, if it is completed.

A registration statement relating to Google’s Class A common stock has been filed with the Securities and Exchange Commission but has not yet become effective. Google’s Class A common stock may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of Google’s Class A common stock in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. No offer to buy shares of Google’s Class A common stock can be accepted and no part of the purchase price can be received until the registration statement has become effective, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time until the notice of acceptance is sent after the effective date.

Category SEO
SEJ STAFF Loren Baker Founder at Foundation Digital

Loren Baker is the Founder of SEJ, an Advisor at Alpha Brand Media and runs Foundation Digital, a digital marketing ...

Google Lowers IPO Price, Limits Shares

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