Approval for Google’s somewhat reduced flotation from the Securities and Exchange Commission will result in trading of the company’s shares starting later today.
Google yesterday slashed the expected pricing of its shares to between US$85 and US$95 a share, compared with the original range of US$108 to US$135 a share. It also cut the number of shares offered to 19.6 million from 25.7 million, which will raise US$1.67bn for the company in what will be the fourth largest US IPO this year.
The SEC signed its approval last night. The US$85 per share price values Google at US$23bn.
However, anticipated demand for the shares already appears to be somewhat lukewarm, with institutional buyers indicating they would stay away from the stock in the expectation of sharp price falls after the IPO.
By John Kennedy
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