Updated from 7:34 a.m. EDT
stock market valuation is looking attractive -- to Google.
The Internet search company filed with the
Securities and Exchange Commission
Thursday to sell 14.2 million new Class A shares in an underwritten public offering. It will use the roughly $4 billion raised for general corporate purposes including working capital and possible acquisitions.
Google has more than tripled since its August 2004 initial public offering and closed Wednesday at $285.10. In early trading Thursday, Google shares were down $7.01, or 2.5%, to $278.09.
The sale will comprise Google Class A shares, which make up the great majority of its publicly owned equity. The stock entitles voters to a single vote in corporate matters, compared with the 10 votes attributed to the Class B shares.
The stock sale includes a 600,000-share over-allotment option. Assuming the option is exercised by the underwriters, Google will have 191.1 million Class A shares outstanding after the sale, and 101.7 million Class B shares outstanding.
At Wednesday night's closing price, the new shares would go out at 51 times this year's Thomson First Call earnings consensus and 38.7 times next year's.