Shares in the internet search engine company Google began trading in New York for the first time yesterday.

The stock's value shot up by 18 per cent in early trading from an offer price of $85 to $100.51.

Google had to cut its offer price from an initial estimate of $108 to $135 in the face of weakness in the sector and snags during the offer process.

It unveiled plans to float in April and surprised the market by opting to sell shares via a Dutch auction.

The price was determined by the investors, who stated how much they were willing to pay for each share.

The highest bidders were guaranteed a stake in the company and the issue price was set by the lowest bid after all shares were allocated.

The sale of all 19.6 million shares was expected to raise $1.66 billion (£0.9 billion).

Friday August 20, 2004