WASHINGTON – Google Inc., the Web's No. 1 search engine, expects to close bidder registration for its auction-style initial public offering at 5 p.m. EDT on Aug. 12, the company said on Tuesday.
The auction of 25.7 million shares of Class A common stock will start soon after the close of registration, Google said in a statement posted on its IPO Web site, http://www.ipo.google.com.
Investors must have a "bidder ID" to participate in the "Dutch auction (search)" IPO.
Google has said in offering documents filed with the Securities and Exchange Commission (search) that it expects the shares to price between $108 and $135.
The company said in a filing on Monday that it would issue 2.7 million shares to Yahoo Inc. (YHOO) to settle a patent lawsuit.
It said Yahoo would add 1.1 million of those shares to the Google IPO, raising the size of the IPO to 25.7 million shares from 24.6 million. Yahoo is selling a total of 1.6 million Google shares in the IPO.
In the same filing, Google added some new details on the different ways the 28 underwriters will collect bids from interested investors.
Most underwriters will permit investors to submit an unlimited number of bids, but a few are capping the number of bids allowed per account.
Last week, Google spooked investors when it disclosed in a filing that it may have illegally issued 23.2 million shares to former and current employees.
The company has extended a share buyback offer worth $25.9 million to those shareholders. But Google said the shareholders are unlikely to accept the offer, as the buyback price will likely be significantly lower than the price the shares could fetch on the open market.
When the buyback offer expires, on an undisclosed date in September, any person who does not accept it will have freely tradable stock, subject to the company's lock-up and vesting restrictions.