Google cuts IPO price range to $85-95

Google said it had cut price range of its flotation shares to $85-95 from $108-135, effectively slashing launch value of the company.

Google Incorporated said Wednesday it had reduced the price range of its flotation shares to between $85 and $95 from $108 to $135, effectively slashing the launch value of the company.

The group said it hoped it would win approval from US regulators for its initial public offering. The earlier price range had valued the company at up to $36 billion.

The company also reduced the number of shares on offer by 6.1 million to about 19.6 million shares.

The reduction of the launch price range amounts to about 26 per cent. Together with the reduction of the number of shares being offered, it signals a big reduction in the launch value of the Internet search engine company.

Google and its underwriters requested that the Securities and Exchange Commission declare the registration statement effective on Wednesday at 4:00 pm in New York (2000 GMT).