Google cuts share pricePosted 19/08/2004
The US Securities and Exchange Commission (SEC) has approved Google's stock float after the search engine giant reduced the size and the cost of its initial public offering (IPO).
Google filed another amendment with the SEC that detailed the changes it would be making, including a reduction of the price per share, from between $108 and $135 a share to between $85 and $95.
Google also reduced the amount of shares that would be available from existing shareholders. The search engine announced that it was cutting the available shares from 25.7 million to 19.6 million. Of the available stock, Google still plans to sell 14.1 million shares, as detailed in the initial filing.
The sale of the shares will generate around $1.67 billion, making Google America's fourth largest IPO this year. The price values the company at $23 billion, significantly less than the $36 billion earlier predicted.
SEC regulators approved the new plans on Wednesday and shares in Google can now start trading on the New York stock exchange. Google will stop accepting bids for its shares and could start issuing stock within a matter of hours.
The planned flotation has already suffered several setbacks and was delayed after the SEC took longer than expected to sign off the necessary paperwork.
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