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

No
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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)...
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William Ernest Reid
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Markets are expected to remain negative open and range-bound today amid negative global cues. All eyes will be on Fed's move later today where the central bank is expected to step up its battle to revive the recession-hit US economy when it cuts interest rates to a record low of 0.5 per cent and announce a host of measures which was first tried in the Great Depression to bring down borrowing costs for companies and home owners. However, Indias central bank has signalled its intention to unveil new measures to make the money markets more efficient. The Reserve Bank of India (RBI) is in the process of forming a new technical committee for money and forex markets, consisting of representatives from various financial regulators.
According to data released by the NSE, in the last session, FIIs were net sellers of index futures to the tune of Rs 201.07 crore while bought index options worth Rs 6.21 crore. They were net buyers of stock futures to the tune of Rs 2.81 crore while sold stock options worth Rs 0.28 crore.
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