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Google's $2.7 billion initial public offering, to be priced through an electronic auction, will test the large-scale viability of a so-called Dutch auction, designed to both democratize IPO share allocation and afford companies and early investors the best price for their shares.
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www.forbes.com/2004/05/10/cx_aw_0510mondaymatchup.html
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A Dutch auction curtails or removes the ability of the investment bank to influence the opening price of the shares and its ability to allocate IPO shares at all. It's share democracy at its finest. If you're willing to name an insane price for shares in a Dutch auction IPO, you're going to get 'em.
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www.fool.com/investing/general/2004/05/26/going-dutch-w...
www.fool.com/investing/general/2004/05/26/going-dutch-with-google.aspx
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Here is a nice graphic from the NYTimes explaining the Dutch auction IPO. I think Google's IPO will be a success, it will raise more money for Google than a traditional IPO with its high transactions costs (which flow to the investment banks).
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www.marginalrevolution.com/marginalrevolution/2004/08/d...
www.marginalrevolution.com/marginalrevolution/2004/08/dutch_auction_i.html
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Editor's note: Google's decision to launch its 2004 IPO via a so-called Dutch auction process has caused a pause in many companies considering their own IPOs. ... The final price of the IPO in a Dutch auction is the lowest price at which all of the shares are sold. The role of the investment bank as the middleman is minimized.
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hbswk.hbs.edu/archive/4747.html
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Dutch auctions IPO is a (Initial Public Offer) bidding method, which offer most price to stock for releasing firms and democracy in IPO bidding. ... Dutch IPO auctions takes comparatively more time than traditional IPO, and is most suitable for internet/online IPO auctions.
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www.nobletrading.com/blogs/2008/02/what-is-dutch-auctio...
www.nobletrading.com/blogs/2008/02/what-is-dutch-auctions-ipo.html
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Is the Dutch Auction IPO a Good Idea? - The Google IPO raised the question of whether Dutch auctions are prefe : Encyclopedia.com.
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www.encyclopedia.com/doc/1P3-1262858441.html
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This is the old MovableType blog. To enter the new blog visit the home page. ... Economics > Google's Dutch Auction IPO Explained ... August 14, 2004...
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www.lesjones.com/posts/001171.shtml
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McLane, Graf, Raulerson & Middleton ... Google employed the Dutch auction mechanism to create a pre-IPO market mechanism to determine the IPO price point based on the fundamental supply and demand economics of the auction.
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www.mclane.com/newsroom/articles/corporate/google.php
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“Hambrecht has a system that is shattering the old-boy IPO system.” Byrne argues that going public via the Dutch auction provides a much more accurate method to price shares. ... It should be a good test of a traditional IPO vs. the Dutch auction system. CancerVax priced its respective IPO on October 29.
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www.redherring.com/Home/4973
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