Google Ipo Ver2
This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA
Overview
Download & View Google Ipo Ver2 as PDF for free.
More details
- Words: 380
- Pages: 11
Google IPO Case Study Presentation Oct. 13, 2004 Amy Black, Matt Dormer, David Marsden, Yugo Watanabe 101304Google_2
Agenda • Traditional IPO • Dutch Auctions (reverse auction) • Examples of other Dutch Auction • Was the IPO successful?
Traditional IPO • First sale of publicly traded stock • Private vs Public • IPO Specialists • Regulated by the SEC
Dutch Auction • Overview of Dutch (Reverse) Auction Process - Company determines amount of stock and price range - Buyers place bids and price goes down until stock is sold
• Goals of Dutch Auction - Open up offering to Individual investors - Lower fees paid to Investment Banks - Reduce volatility - Google saw themselves at the frontier of technology
Dutch Auction • Snapshot at Google’s IPO - 25.7 M shares originally priced at $108-135/share - Actual IPO priced 19.6 M shares at $85-95/share
• Hybrid Auctions May become the norm
Other Dutch Auctions • Since April 9, 1999, 9 companies have used the Dutch auction system to go public • Before Google, only one reduced its offering price (Peet’s Coffee) • Reducing an IPO’s price is not unusual
Other Dutch Auctions • Two companies priced their offerings higher than the initial price • Alibris was the only Dutch auction to be withdrawn
April 29 Filed IPO Excitement for potential to reinvigorate the tech-market
July 30
Aug. 12 13
Registration Period
Aug. 17
Auction Period
Skepticism; technical issues (too expensive & cumbersome)
Aug. 19 Trade Begin 1st Day Nasdaq Trading $85 ⇒ $100.34 +18%
Oct. 12 Last Trade 136.66
Was the IPO successful? Achieved primary purpose of an IPO. • Raised $1.7 billion - more than any other tech company since 2000 • Gave stock valuation of $23 billion - more than double the market value of Sears - worth more than AT&T corp., Xerox Corp. and RadioShack Corp. combined. The Washington Post Aug. 19, 2004 Los Angeles Times Aug. 20, 2004
Was the IPO successful? • First- day “pop” - 1990 ~ 98, historically 15 % average - bubble of the late 90’s ⇒ First day gains averaged 65% • Banker Fee - as much as 7% of the money raised The San Francisco Chronicle Aug. 22, 2004 Los Angeles Times Aug. 19, 2004
Oct. 12, 2004: Last Trade 136.66
Agenda • Traditional IPO • Dutch Auctions (reverse auction) • Examples of other Dutch Auction • Was the IPO successful?
Traditional IPO • First sale of publicly traded stock • Private vs Public • IPO Specialists • Regulated by the SEC
Dutch Auction • Overview of Dutch (Reverse) Auction Process - Company determines amount of stock and price range - Buyers place bids and price goes down until stock is sold
• Goals of Dutch Auction - Open up offering to Individual investors - Lower fees paid to Investment Banks - Reduce volatility - Google saw themselves at the frontier of technology
Dutch Auction • Snapshot at Google’s IPO - 25.7 M shares originally priced at $108-135/share - Actual IPO priced 19.6 M shares at $85-95/share
• Hybrid Auctions May become the norm
Other Dutch Auctions • Since April 9, 1999, 9 companies have used the Dutch auction system to go public • Before Google, only one reduced its offering price (Peet’s Coffee) • Reducing an IPO’s price is not unusual
Other Dutch Auctions • Two companies priced their offerings higher than the initial price • Alibris was the only Dutch auction to be withdrawn
April 29 Filed IPO Excitement for potential to reinvigorate the tech-market
July 30
Aug. 12 13
Registration Period
Aug. 17
Auction Period
Skepticism; technical issues (too expensive & cumbersome)
Aug. 19 Trade Begin 1st Day Nasdaq Trading $85 ⇒ $100.34 +18%
Oct. 12 Last Trade 136.66
Was the IPO successful? Achieved primary purpose of an IPO. • Raised $1.7 billion - more than any other tech company since 2000 • Gave stock valuation of $23 billion - more than double the market value of Sears - worth more than AT&T corp., Xerox Corp. and RadioShack Corp. combined. The Washington Post Aug. 19, 2004 Los Angeles Times Aug. 20, 2004
Was the IPO successful? • First- day “pop” - 1990 ~ 98, historically 15 % average - bubble of the late 90’s ⇒ First day gains averaged 65% • Banker Fee - as much as 7% of the money raised The San Francisco Chronicle Aug. 22, 2004 Los Angeles Times Aug. 19, 2004
Oct. 12, 2004: Last Trade 136.66
