Google stock launch delayed
Google’s long-awaited initial stock sale has been delayed while the company awaits final approval of its paperwork by the Securities and Exchange Commission.
John Heine, an SEC spokesman said the internet search company had asked that its registration statement be made later today.
Heine declined to provide a reason for the delay.
The company has updated its regulatory filings several times since first announcing its plans to go public in April. Typically, companies work closely with the SEC to ensure all paperwork is in order, making final approval a routine process.
Google had planned to close its share price-setting auction no earlier than an hour after receiving the SEC’s blessings.
If that had happened, winning bidders could have been notified and shares could have been traded on the Nasdaq Stock Market today.
Google anticipates that its 25.7 million shares will be priced between $108 dollars (€87.40)) and $135 (€109.30) each in what could be a $3bn (€2.4bn) initial public offering, which would be a record for an internet company.
If the stock trades at the midpoint of Google’s range, it would have a market capitalisation of about $30bn (€24.3bn) – lower than Yahoo! But above General Motors.
The deal would turn Google’s 30-something co-founders Larry Page and Sergey Brin into billionaires and create a windfall for the search company’s early investors and 2,292 employees, who are expected to sell at market prices shares they bought for as little as $0.30 (€0.20) each.
