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Google IPO Basic Information On Thursday, April 29, 2004 Google filed with the Securities and Exchange Commission to sell up to $2. ... The IPO would rank Google among the fifteen largest IPO’s in US history. ... Google plans to offer their IPO using the auction process. The Dutch Auction Process The auction system Google intends to follow is based on the Dutch auction system is modeled after Netherlands’ technique of selling flowers. ... Google IPO Facts Google has chosen Credit Suisse First Boston and Morgan Stanley to lead the initial public offering (IPO). ... Based on Google’s estimated value of $25 billion, the 30% shares held by the two founders, Larry Page and Sergey Brin would make them worth about $4 billion each. Following is a list of other major stockholders of Google who also stand to benefit from the IPO. Major Shareholders of Google Inc. ... This information was released in the Google IPO filing. ... 00 1,468,000 *Includes Sales commissions All bonuses include a holiday bonus of $1,556 Source: WSJ Aril 29, 2004 Google: IPO and Large Shareholder Compensation Google’s Proposed Auction Process As stated earlier, the Dutch auction process differs from the traditionally used methods of underwriting IPO’s in the United States. The IPO and allocation of shares will be determined primarily by Google underwriters on their behalf. ... The Qualification Process Google’s objective is to conduct an auction in which the bidder submits informed rather than speculative bids. ... • Understand the risk factors inherent in the auction process for the IPO, and, in particular, the possibility that the stock price may decline significantly below the IPO price. ... • Understand that Google and their underwriters will reject bids that are perceived to be speculative or manipulative. If a bidder submits a speculative or manipulative bid, they will not receive an allocation of stock in the IPO. • Understand that a certain number of Google’s existing shares will be available for sale to the public at a time specified by the IPO. When the preliminary prospectus becomes available, Google’s underwriters begin taking bids in the auction for the IPO. By following this approach, Google’s management hopes to enable all interested investors to have the opportunity to qualify to bid and, following qualification, place bids in the auction for the IPO. Google cautions that the Class A common stock may not be a suitable investment for all bidders. ... The Bidding Process Google has selected Morgan Stanley & Co., Incorporated and Credit Suisse First Boston LLC to assign the IPO. After the bidding commences, all investors that have qualified to bid may submit bids indicating their interest in Google’s offering through one of Google’s underwriters. ... • Any additional information that will enable the underwriter to identify the investor, confirm their eligibility and suitability for participating in Google’s offering. ... Bids may be within, above or below the estimated price range of the IPO on the cover of this prospectus. ... To participate in the auction for the IPO, the underwriters will require that an investor agrees to accept electronic delivery of Google’s prospectus, any amended prospectus and the final prospectus. If the investor does not consent to electronic delivery they will not be able to submit a bid or participate in Google’s offering. An investor that does not have a brokerage account with either of Google’s underwriters, but is interested in submitting a bid, may contact one of the underwriters to inquire about opening an account and submitting a bid. ... In addition, investors that are customers of one of Google’s underwriters may not be permitted to submit a bid due to legal requirements, even if the investor has received a unique bidder ID. Google’s underwriters will document all bids, including the identity of the bidders, in a master order book that will be reviewed by Google. Thereafter, Google and their underwriters will have the ability to reject speculative bids and bids that have the potential to manipulate or disrupt the bidding process.