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Thursday, August 19, 2004

BBC > Google will float at $85 a share

Google's initial public offering has been priced at $85 a share, much lower than earlier estimates of up to $135.
US regulators on Wednesday approved documents relating to the flotation of the internet search engine, and shares could start trading on Thursday.
The sale of 19.6m shares - lower than the planned 25.7m - will raise $1.67bn in the fourth largest US IPO this year.
The move is likely to have been needed to revive interest as stock exchanges around the world come under pressure.
The Securities and Exchange Commission signed off relevant paperwork on Wednesday, enabling Google to proceed.
The price values Google at $23bn, significantly less than the $36bn projected at the higher share price.
With the rewards set to be less, Google founders Larry Page and Sergey Brin are selling a smaller part of their stake, with other executives also holding on to more of their stocks.
"They recognised that there wasn't the appetite for shares," said Hilary Cook, an analyst at Barclays stockbrokers in London.
The planned flotation, watched with keen interest around the globe, already has encountered some problems.
It was delayed after the SEC took longer to sign off the necessary paperwork than previously expected.

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