18 Aug 2004
Google yesterday slashed the price of its initial public offering (IPO) to between $85 (£46) and $95 (£52) per share, a sharp drop from its expected valuation of between $108 (£59) and $135 (£74).
The online search company will also cut the number of shares that its shareholders plan to sell by more than half, a reduction of about 6.1m shares to just 5.5m.
The changes reduce the maximum size of the IPO to about $1.9bn (£1bn), which lowers the total valuation of the company to less than $26bn (£14bn), a drop of more than $10bn (£5.4bn).
Under the company's Dutch auction sale of shares, potential investors were asked to specify the price and the number of shares they wanted.
Bids are placed in order, starting with the highest price, allocated down until all available shares have been accounted for.
The lowest successful bid then becomes the issue price on the Nasdaq stock exchanged when the company starts trading publicly.
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