Google said it expects $4.11 billion in net proceeds from its Class A shares.


USA Today reported in August that Google was celebrating its first birthday as a public company by selling another $4 billion worth of stock. It said, “In a single move, announced in a regulatory filing Thursday, the search engine is raising more money than some other Internet companies are worth, including RealNetworks and EarthLink. It’s also raising more than twice the $1.7 billion it brought in with its initial public offering.”

Now the Google stock is at $297.28. In a regulatory filing Google has said that the funds will go toward general corporate purposes, including working capital, capital expenditures, and acquisitions of complementary business, technologies or other assets. The company gave no details.

The estimated net proceeds were calculated based on an assumed price of $294.87 per share. In early trading on Thursday, Google stock traded at $294.87, up $7.76, or 2.7 percent.

Google said total proceeds could reach $4.29 billion if underwriters exercise their over-allotment option to buy an additional 600,000 shares.

The filing with the U.S. Securities and Exchange Commission added 17 underwriters to the offering. Morgan Stanley, Credit Suisse First Boston, and Allen & Co. are the lead underwriters.

Sharing is caring