Google Sets Deadline to Enter IPO Auction
Google Inc. will close the registration process for its IPO auction Thursday, setting the stage for the online search engine leader’s hotly anticipated stock market debut.
The Mountain View, Calif.-based company posted an online notice Tuesday announcing plans to end the registration process at 2 p.m. PDT Thursday. Google plans to launch an unusual auction to sell 14.1 million shares soon after closing the registration, the online notice said. Company insiders and early investors are set to offer an additional 11.6 million shares.
Google didn’t offer any additional details about the timing of its initial public offering, but most market observers expect the auction to be completed next week, clearing the way for Google’s shares to begin trading on Nasdaq under the ticker symbol GOOG.
In its IPO prospectus, the company stresses it can close the auction at any time. The prospectus also raises the possibility that the auction could last more than three weeks, noting that bidders will be asked to reconfirm their bids if the process lasts for more than 15 business days.
Once Google is prepared to close the auction, the company must ask the Securities and Exchange Commission to give its final approval of the IPO prospectus. After the SEC signs off on the deal, bidders will have a final opportunity to withdraw their bids. The winning bidders in the auction will be notified by e-mail within 24 hours of SEC approval.
To participate in the auction, bidders need a 16-digit registration number to present to one of the 28 brokerages handling Google’s $3.1-billion IPO. The company has been distributing the identification numbers since July 30 when it opened a special site, www.ipo.google.com.
The site so far has drawn sparse traffic -- an indication that investor interest in Google’s IPO isn’t as intense as many analysts anticipated.
The lukewarm response to Google’s IPO may stem from confusion about the unorthodox auction process and dissatisfaction with the stock’s projected selling price.
In an SEC filing last month, Google said it anticipated its shares would sell for $108 to $135 apiece. The company’s so-called Dutch auction is supposed to determine the final price. Bidders can submit offers below, above or within Google’s price range. Google will analyze the range of auction bids to set the offering’s final, or “clearing,” price.
