Google on verge of going public
By Michael Liedtke
Associated Press
SAN FRANCISCO — Google Inc. will close the registration process for its IPO auction tomorrow, setting the stage for the online search engine leader's hotly anticipated stock market debut.
The Mountain View, Calif.-based company posted an online notice yesterday announcing plans to end the registration process at 5 p.m. EDT tomorrow. Google plans to launch an unusual auction to sell 25.7 million shares shortly after closing the registration, the company said yesterday. No further details were provided.
Most market observers expect the auction for the initial public offering to be completed next week, clearing the way for Google's shares to begin trading on the Nasdaq Stock Market under the ticker symbol "GOOG."
But Google hasn't spelled out a precise timetable. In its IPO prospectus, the company stresses it can close the auction "at any time." The prospectus also raises the possibility that the auction could last two or three weeks, noting that bidders will be asked to reconfirm their bids if the process lasts for more than 15 business days.
Once Google is prepared to close the auction, the company must ask the Securities and Exchange Commission to give its final approval of the IPO prospectus. After the SEC signs off on the deal, bidders will have a final opportunity to withdraw their bids. The winning bidders in the auction will be notified by e-mail within 24 hours of SEC approval.
To participate in the auction, bidders need a 16-digit registration number to present to one of the 28 brokerages handling Google's $3.1 billion IPO. The company has been distributing the identification numbers since July 30 when it opened a special site, www.ipo.google.com.
The site so far has drawn sparse traffic — an indication that investor interest in Google's IPO isn't as intense as many analysts anticipated.
The lukewarm response to Google's IPO may stem from confusion about the unorthodox auction process and disillusionment with the high price that the company wants for its stock.
