Google slashes IPO size by half

The IPO of the world8217;s most popular Web search engine is now slated to raise as much as 1.9 billion, far lower than its previous size of as much as 3.5 billion. Trading could begin as early as Thursday.

Google, whose unusual auction IPO has attracted sceptics since it was announced in April, now estimates its shares will price between 85 and 95 each down from 108 to 135, amid a jittery market for technology shares and IPOs in general.

Shareholders more than halved the number of shares they plan to sell to 5.5 million from about 11.6 million, in light of the lowered price. Google co-founders Larry Page and Sergey Brin and CEO Eric Schmidt cut by half the number of shares they will offer.

Google still plans to sell about 14.1 million shares itself.

The Mountain View, California-based company disclosed the changes in a statement posted on its IPO Web site, http://www.ipo.google.com Google spokeswoman Cindy McCaffrey confirmed the Web site contents, but declined further comment.

The SEC could not immediately be reached for comment.

The changes cut the potential maximum valuation of the company to 25.8 billion from 36.6 billion, based on securities filings. Google is conducting its offering as the overall market for IPOs slumps. 8212;Reuters