Georgetown University IPO Expert Available to Comment on Google

August 05, 2004

Cynthia S. Shaw
(202) 687-4080

Georgetown University IPO Expert Available to Comment on Google

Professor Reena Aggarwal teaches courses in corporate finance, investment banking, and initial public offerings at Georgetown University's Robert Emmett McDonough School of Business. She has written extensively on issues related to allocation of initial public offerings, stabilization activities of underwriters, and price discovery in IPOs. She was an academic fellow at the U.S. Securities and Exchange Commission from 1997-1999.

Professor Aggarwal commented on the Google IPO:

"In recent years there has been a great deal of discussion about the pros and cons of the commonly used bookbuilding method to price and allocate shares. Google is unique for several reasons, and investors should consider all of the following factors before submitting a bid for Google shares: Google will be priced and allocated using a Dutch auction, however the two lead underwriters - CSFB and Morgan Stanley - will determine the final price; Based on the price range of $108-$135 per share, this will be the highest priced IPO ever; There are two classes of stock, and the class with the concentration of voting rights will not be sold to the public; Insiders are not allowed to sell their stock during the lock-up period, which tends to be 180 days for most IPOs, but the lock-up period in the case of Google ranges from as early as 15 days to 180 days. These are all issues that will determine the pricing and aftermarket performance of Google."

Professor Aggarwal is a frequent guest on local and international radio and television stations. Her comments and research have been cited in the Wall Street Journal, Washington Post, Financial Times, Los Angeles Times, Chicago Tribune, and Forbes. Professor Aggarwal has served as an advisor and consultant to both public and private organizations including the U.S. Securities and Exchange Commission, the NASDAQ Stock Market, stock exchanges and securities commissions of several countries, the World Bank, and various investment banks.

Editor's Note: Reporters interested in talking with Professor Aggarwal may contact Jessica Botta, Director of Communications, at (202) 687-4080 or via email to