Google's Auction and the Dangers of the Initial Public Offering

Summary

---

Google, the famous Internet search provider, filed its prospectus for an initial public offering on April 29. The company hopes to raise $2.7 billion, which would be the largest Internet company IPO ever and the first since the dotcorn bubble burst. The Google IPO will have an unusual auction-based structure that may influence future initial public offerings. After having resisted the lure of going public for so long, Google may have to face changes in its culture and operations as a result of its IPO. Under the system outlined by Google, potential investors will register with the banks underwriting the offering, indicating how many shares they want to purchase and the price they are willing to pay. Using the information and other factors, Google and its bankers will determine a "clearing price" for the company's shares. Any investors that bid below the clearing price won't get any shares.

See the full content of this document

Extract

---

Google's Auction and the Dangers of the Initial Public Offering

Google, the famous Internet search provider, filed its prospectus for an initial public offering on April 29. The company hopes to raise $2.7 billion, which would be the largest Internet company IPO ever and the first since the dotcorn bubble burst. The Google IPO will ...

See the full content of this document

---