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"An auction is an unusual process for an IPO in the United States," the company said in the filing. "Our experience with auction-based advertising systems has been surprisingly helpful in the auction design process for the IPO. As in the stock market, if people try to buy more stock than is available, the price will go up. And of course, the price will go down if there aren't enough buyers.
Google also revealed it earned $105.6 million on revenue of $961.8 million in the 2003 fiscal year. In the first quarter of 2004, it earned $25.8 million on revenue of $178.9 million.
Those who have played in IPO would know more than I on this ... but I'm assuming not all shares will be sold, meaning they expect a higher price. Double that price? How's $20/share sound?
That does make for a pretty lousy P/E ratio ...
"It is important to us to have a fair process for our IPO that is inclusive of both small and large investors. It is also crucial that we achieve a good outcome for Google and its current shareholders. This has led us to pursue an auction-based IPO for our entire offering."
I'm no market expert, but I admire this much: They seem to be going about it their way, setting their terms, and saying that if you don't want to go along, you won't be taking part in the auction.
I was also keen to notice in the fine print toward the end that employees have been offered (and did purchase) millions of stock options at 30 to 35 cents a share. Here comes a new round of millionaires, right GoogleGuy? :)
Google also revealed it earned $105.6 million on revenue of $961.8 million in the 2003 fiscal year. In the first quarter of 2004, it earned $63.9 million on revenue of $389.6 million.
If you take a close look at the form Google filed with the Securities and Exchange Commission, the exact value of its planned offering is $2,718,281,828 dollars, which some would immediately recognize as the mathematical constant e.
E, for those not blessed with a PhD and a job at Google, is Euler's number, which is used as the base for natural logarithms.