Google IPO Hits Roadblocks
CNBC and The Wall Street Journal reported last week that the Mountain View, CA, search giant will push its initial public offering back a week while it resolves complexities in registering investors for its unusual share auction. The reports cited people involved in the IPO process as sources.
Google never set an official date for its stock offering, saying only in a filing July 25 with the Securities and Exchange Commission that it would happen in August. It opened its IPO registration Web site, www.ipo.google.com, on July 30.
Google's IPO, which could be worth up to $3.3 billion, has run into several obstacles. Many professional investors have bristled at the dearth of financial projections in the company's road show presentation and questioned its $108 to $135 per share price range for the stock offering.
Google said in an SEC filing Aug. 4 that it failed to properly register stock issued to employees from September 2001 to June 2004. It said the company could face legal action in 18 states and on the federal level as a result. The California Department of Corporations said Aug. 5 it would investigate the stock allocations to determine whether they violated the state's securities law.