Preparing for Google Incorporation’s IPO Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Preparing for Google Incorporation’s IPO Case Study Solution

IPO Related Cost and its Management:

As such, it is wise for the company to have a dual class structure for its shares, because it helps in maintaining control over company. When the company went public and issues IPOs, it issued class B shares having no voting rights in order to make sure that the executives and founders still had control of the corporation.

In addition to this, the company wisely dealt with cost associated with issuing IPO to go public. As such, the interview has published in the playboy magazine, this in turn have violated the SEC rules tends to restrict the comments which might be made regarding Google in a lead up to an IPO. This in turn, delayed the IPO, but the company has successfully avoided this and admitted that the misleading statement have made in the article and issued the revised prospectus containing the overall playboy article.

Auction IPO:

In Auction IPO, a share price has been charged through an auction IPO is below than the market price. Here, any excess demand at the offered price or range for an IPO is distributed accordingly to all successful subscribers for the IPO bid. In an auction IPO, if the excess demand is slightly higher than the offered shares than company consider this and allocate this to all successful subscribers.

By seeing the large over subscriptions for Google Incorporation’s IPO, it has been considered that the Google’s first IPO is became successful in investors market. After making the detailed analysis on the historical Google’s shares price in market, it has been observed that after the completion of two months of Google Incorporation’s IPO, the market price of shares got doubled in value, which indicates the better aftermarket performance of Google Incorporation’s shares.(Page, 2004).