Google filing to suggest IPO-share price range

[intelliot]

How much are Google's shares worth? The company will provide a good indication as soon as this week, according to investment analysts.

The Mountain View Internet search engine is expected to disclose a price range for what it believes is the value of its shares, answering one of Silicon Valley's biggest questions. The range is intended to help guide potential investors in Google's widely anticipated initial public offering.

The disclosure will come in a regulatory filing, perhaps in conjunction with the company's second-quarter financial results. Google's second quarter ended June 30.

Google's disclosure of a share price will also give a window on to how much the company is worth as a whole. Analysts have estimated the amount to be between $20 billion and $40 billion.

Until now, Google executives have only hinted at the value of their company's shares. For example, in a regulatory filing last month, the company reported that the underlying value of its stock options on March 31 was $88.13.

Analysts believe the price range Google will report should bookend that figure, barring a stock split.

"My guess is that you will see a range in that neighborhood," said Scott Kessler, an analyst for Standard & Poor's.

However, Google may have to take into account Wall Street's recent coolness to Internet stocks when it calculates its share price range, according to analysts. Many of Google's peers are down at least 25 percent during the past few weeks.

One sign of where the floor may be is the strike price of the company's stock options. They are typically awarded at a discount from the actual value of the stock so that employees can profit.

Last month, Google told workers that it will raise the strike price for new options to $60, according to a person who saw the e-mail announcement.

Whatever Google provides as a price range, it reserves the right to change it later. In its regulatory filings, the company has said that it could adjust the price range based on bids it receives for shares during its unusual Dutch auction.

Unlike most initial public offerings, which allot shares at a fixed price, Google is using an auction. The method is intended to maximize the amount of money Google raises in the sale and allow small investors to get in on the offering instead of only those who have deep pockets.

In disclosing a price range, Google will be helping investors and analysts determine whether the company is a good investment. However, some have complained that even knowing the price range is insufficient because Google hasn't said how many shares it will have when the initial public offering takes place.

"There's too much left to be determined right now, and it won't be in concrete until the very end," said Barry Randall, a senior portfolio manager for the First American Technology Fund at U.S. Bancorp.

Analysts believe that Google will issue its initial public offering sometime in August or September. However, they point out that August is less likely because it's traditionally a slow month on Wall Street because many executives at big investment companies are vacationing.

Furthermore, analysts expect Google to conduct a limited road show in which it makes a sales pitch to potential big investors, according to analysts. That could take a few weeks to do, they said.

[Ehrick]

Google looks like it will only go up. Could be a good idea to invest in it. Course those rumors of (a) lawsuit(s) could be a bad thing... Still, they're just targeted at the company with the money I think. It will be interesting to see how valuable it ends up being.

[cvrk3]

may be in the range of 80$