JoesHO
07-12-2004, 12:12 PM
Google seeks IPO launch soon
By David Wells in New York and Richard Waters in San Francisco
Published: July 11 2004 21:48 | Last Updated: July 11 2004 21:48
Google, the most widely used internet search engine, is aiming to complete its long-awaited initial public offering as soon as this month.
The sale rests on tests of the computer auction system as well as approval from the US Securities and Exchange Commission.
Google and its bankers, a team of 30 led by Morgan Stanley and Credit Suisse First Boston, have been testing the system they will use to run the auction - the process Google has chosen to distribute shares to investors.
Google filed its intent to raise money through an IPO at the end of April. However, completing a sale by the end of July could prove difficult. Several hurdles remain, including setting a potential price range, marketing the transaction and a green light from the SEC.
Regulators could still delay the offering, as happened with Salesforce.com, another closely watched technology company whose shares surged 56 per cent on their debut last month. Demand for Google shares is expected to be intense. A successful sale this month would build on the rising demand for shares of initial stock offerings.
June was the best month by volume for IPOs in three years, according to Dealogic, which provides data on global investment bank rankings. There were 115 offerings totalling $16.3bn (?13.1bn) - the highest monthly dollar volume since the $19.2bn of June 2001. Many of the IPOs soared on their first day of trading, a situation Google is trying to avert by using the auction.
Neither Google nor its bankers would comment on the IPO. The company has kept a low profile throughout the process and has imposed strict rules of secrecy on its bankers.
The Google IPO, which should total at least $2.7bn depending on demand, will be one of the biggest of the year. A successful sale would provide its bankers with bragging and marketing rights, but it is not expected to be a fee bonanza.
Large IPOs do not typically generate the 7 per cent fees Wall Street often enjoys for IPOs. In fact Merrill Lynch pulled out of the syndicate in part because it was worried the fees would not be worth the effort, according to people close to the situation.
Would-be investors will be able to submit bids to any of a syndicate of 30 institutions. Many banks and brokers will accept orders over the internet, the company said in its prospectus.
The novel auction that Google will use to set its stock price and allocate shares to investors could be completed within two hours of the SEC giving the go-ahead, the company added.
By David Wells in New York and Richard Waters in San Francisco
Published: July 11 2004 21:48 | Last Updated: July 11 2004 21:48
Google, the most widely used internet search engine, is aiming to complete its long-awaited initial public offering as soon as this month.
The sale rests on tests of the computer auction system as well as approval from the US Securities and Exchange Commission.
Google and its bankers, a team of 30 led by Morgan Stanley and Credit Suisse First Boston, have been testing the system they will use to run the auction - the process Google has chosen to distribute shares to investors.
Google filed its intent to raise money through an IPO at the end of April. However, completing a sale by the end of July could prove difficult. Several hurdles remain, including setting a potential price range, marketing the transaction and a green light from the SEC.
Regulators could still delay the offering, as happened with Salesforce.com, another closely watched technology company whose shares surged 56 per cent on their debut last month. Demand for Google shares is expected to be intense. A successful sale this month would build on the rising demand for shares of initial stock offerings.
June was the best month by volume for IPOs in three years, according to Dealogic, which provides data on global investment bank rankings. There were 115 offerings totalling $16.3bn (?13.1bn) - the highest monthly dollar volume since the $19.2bn of June 2001. Many of the IPOs soared on their first day of trading, a situation Google is trying to avert by using the auction.
Neither Google nor its bankers would comment on the IPO. The company has kept a low profile throughout the process and has imposed strict rules of secrecy on its bankers.
The Google IPO, which should total at least $2.7bn depending on demand, will be one of the biggest of the year. A successful sale would provide its bankers with bragging and marketing rights, but it is not expected to be a fee bonanza.
Large IPOs do not typically generate the 7 per cent fees Wall Street often enjoys for IPOs. In fact Merrill Lynch pulled out of the syndicate in part because it was worried the fees would not be worth the effort, according to people close to the situation.
Would-be investors will be able to submit bids to any of a syndicate of 30 institutions. Many banks and brokers will accept orders over the internet, the company said in its prospectus.
The novel auction that Google will use to set its stock price and allocate shares to investors could be completed within two hours of the SEC giving the go-ahead, the company added.