Revisiting Google Inc (GOOGL)’s IPO After 10 Years

Exactly a decade ago Google Inc (NASDAQ:GOOGL) conducted its initial public offering (IPO) and went public. At that time and even now, the ‘Dutch Auction’ model that Google Inc (NASDAQ:GOOGL) used for its offering is considered rather unconventional. The man behind Google Inc (NASDAQ:GOOGL) ‘s IPO,  Bill Hambrecht, Co-founder and Chairman of WR Hambrecht, discussed the ‘Dutch Auction’ model and Google Inc (NASDAQ:GOOGL) ‘s IPO on CNBC recently.

Google Inc (NASDAQ:GOOGL)

“After the Google Inc (NASDAQ:GOOGL) offering, we did a number of offerings [...] Morningstar, Interactive Brokers Group,  some really good ones on our own and after the Interactive Broker Group, the bold firms came to us and said “OK, enough is enough, we will work with you and we will use the auctions.”  It just didn’t work, because they just don’t want to use the auction, they don’t want to give up the ability to allocate shares to their best clients and most important they don’t want to give up the ability to discount the price,” Hambrecht said.

Hambrecht clarified that the problem is with the banks who don’t want to use the Dutch auction models and not with the model per se. According to him, the model is still very viable and his firm has re-entered the IPO market, doing smaller deals where they are not competing with the big firms and in the end the Dutch auction model will have its own successes. At the time of Google Inc (NASDAQ:GOOGL)’s IPO most of the people believed that at $85 a share, the company was overvalued, though they were all proved wrong as the stock debuted at that price and within a year was trading at more than double of that price. Hambrecht revealed that some of the banks that were originally meant to do the IPO had priced Google Inc (NASDAQ:GOOGL)’s shares at $60 to $70 for the offering.

Disclosure: None

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!