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

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!