Google Searches for Top Prices; As the Internet Giant Prepares for Flotation, Julia Fields Asks If Its Target Share Price Is Sustainable in the Wake of Disappointing Ipos

Summary

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THE long-awaited flotation of Google drew closer last week as the internet search engine giant revealed the astounding price range it expects to sell its shares at when it lists on the Nasdaq.

The Californian company said it would sell almost 25 million shares at between $108 and $135 apiece raising a record $3.3 billion at its initial public offering. It was enough to make several analysts choke on their morning coffee.

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Google Searches for Top Prices; As the Internet Giant Prepares for Flotation, Julia Fields Asks If Its Target Share Price Is Sustainable in the Wake of Disappointing Ipos

At the top end the company would be valued at more than 300 times its earnings at $36bn, while rivals Microsoft and Yahoo trade on price-to-earnings ratio of 56 times and 110 times, respectively.

While no one would deny that Google is hot property, advisers seem to have ignored the falling Nasdaq and other companies' disappointing initial public offerings (IPOs) - the first sale...

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