Google Registers To Offer 5.3 Million New Shares

Google will have even more money to spend courtesy of a new stock issue. The company plans to offer 5.3 million new share of its Class A common stock. From the announcement: “This offering will partially meet the anticipated needs of index funds to purchase Google Class A common stock when Google is added to the S&P 500 Index at the close of trading on March 31, 2006.”

The proceeds will go to “general corporate purposes, including working capital and capital expenditures, and possible acquisitions of complementary businesses, technologies or other assets.” Goldman, Sachs is the sole underwriter.

The math: Google closed at $394.98 Wednesday; at that price, the new issue would raise nearly $2.1 billion. The filing already has affected the price, though, knocking it down to $381.70 after hours. MKTW | WSJ (sub. req.)

Update: Google issued a secondary round of Class A common stock last fall — 14.16 million shares priced at a slight discount of $295 to raise just over $4 billion. (Goldman Sachs was not among the nine firms involved in that offering.)

Related: Google Secondary Offering To Raise $4.18 Billion

Google Celebrates IPO Anniversary By Trying To Raise Another $4 Billion

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