Google sets IPO price range
When Google Inc. commences its unorthodox IPO (initial public offering), it expects shares to begin trading in the range of US$108 to $135 each, the company said Monday in a regulatory filing. Pricing at the high end of that range would give the Web search and services provider a $36.3 billion market capitalization.
Google's IPO is expected to take place next month, though obstacles or postponements could prolong the wait. The Mountain View, California, company will trade on the Nasdaq exchange under the ticker "GOOG."
Google intends to offer its shares though an auction, a novel spin on the traditional IPO process. The company plans to sell 14.1 million shares, raising up to $1.9 billion for general corporate purposes. Stockholders, including Google's founders, plan to offer another 10.5 million shares.
Google's Monday filing updated its financial report, adding information on its results from the quarter ended June 30. For the first six months of the year Google had revenue of $1.4 billion, more than twice its revenue from the first half of 2003. Net income was $143 million, up from $58 million in the first six months of last year.