Google shares debut with a splash

Google shares have jumped 18% in their long-awaited stock market debut, after a scaled-down $1.67 billion IPO marked by missteps and lacklustre market conditions.

    The internet firm cut the price it initially wanted for its issue

    Google co-founder Larry Page and chief executive Eric Schmidt, guarded tightly by security, were at the Nasdaq stock market's broadcasting facility in Manhattan on Thursday as the Web's most popular search engine began trading as a public company.

       

    After ending its unconventional auction to price and sell the shares on Wednesday, Google sold 19.6 million shares at $85 each, raising $1.67 billion, the biggest IPO so far by an internet company.

       

    The shares ended trade at $100.34, up $15.34, or 18%, valuing the company at $27.2 billion and its founders' stakes at $4.35 billion. Trade ranged from a high of $104.06 to a low of $95.96.

     

    Slight dip

       

    Google shares dipped slightly in after-hours trade after Nasdaq closed on Thursday, to $100.02, but analysts expected the shares to be well supported in the weeks ahead as buyers who missed out on the auction place bids.

       

    "There were a fair amount of institutional buyers that stayed out the auction but came in (today)"

    Martin Pyykkonen,
    analyst at Janco Partners

    "There were a fair amount of institutional buyers that stayed out the auction but came in (today)," said Martin Pyykkonen, an analyst at Janco Partners, on Thursday. "I see a floor in the $90s."

       

    Workers at Googleplex, the glassy corporate complex in Silicon Valley, waved off reporters' questions about their big payday as they showed up for work on a cool Thursday morning.

     

    Local businesses reported that some of Google's 2300 employees had been shopping recently for new cars and toys.

     

    Google, however, did not fetch the price it had initially targeted for its IPO. On Wednesday, it slashed the expected price range on the shares to between $85 and $95, down from a previous range of $108 to $135.

     

    It also cut the number of

    shares offered to 19.6 million from 25.7 million.

    SOURCE: Reuters


    YOU MIGHT ALSO LIKE

    Trump's Middle East plan: Decoding a century of failed deals

    Trump's Middle East plan: Decoding a century of failed deals

    Al Jazeera read all 181 pages of 'the deal of the century', comparing its language with 100 years of failed agreements.

    We foreigners: What it means to be Bengali in India's Assam

    We foreigners: What it means to be Bengali in India's Assam

    As tensions over India's citizenship law shine a light on Assam, a writer explores the historical tensions in the state.

    Sentenced to death for blasphemy: Surviving Pakistan's death row

    Sentenced to death for blasphemy: Surviving Pakistan's death row

    The story of a man who spent 19 years awaiting execution reveals the power of a false blasphemy claim to destroy a life.