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Questions on the IPO of Google

Google's IPO price was only $85/share on around August 2004, but within a year, its share price was over $290/share. Apparently, they should have IPO'd at a much higher starting price. By doing so, GOOG would have had a lot more capital at hand. For example, if GOOG IPO'd at $200/share, for example, they would have had more than two times as much money than when they IPO'd at $85/share.

My question is this: GOOG suffered a little at the expense of the shareholders. Who was at fault for this? I believe that who ever underwrote GOOG, and I realize that a Dutch Auction was done, were the worst underwriters of all. Is my assessment correct?

Reply to
2.7182818284590...
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2.7182818284590... wrote on 12/14/08 11:38 PM:

No

Reply to
Blash

Nah, you've also got to take into account the REALLY important thing in all these latter-day "IPO"s: the percentage of the company they actually sold to the public. In Google(TM)'s case, they also had a two-teir stock system where the stock they sold to the public has little voting rights compared to the stock the management kept.

The "Dutch Auction" was just kind of dumb gimmick, just a little odd wrinkle, but other than that, it was another brilliant rip-off of the super-gullible American investing public; the underwriters and Google(TM) insiders "Madoff" with many, many, $billions (of course, people who bid in the auction at $85 also did well, but not as well as the guys RUNNING the auction)...

Reply to
Bill Reid

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