The most eagerly awaited IPO in years is ready to roll. Google is using a controversial auction to raise funds. Funnily enough the big US banks are not happy.

Google is taking an unorthodox approach to its IPO in refusing to let the banks dictate the share price. Instead the initial share price will be set by an auction.

The move is a reaction to IPOs during the dotcom era, when billions of dollars in profits were made by shareholders. The listing firms felt they had missed out.

Auctions are not without their disadvantages. Not least is the "Winners Curse", in which the highest bidder has the feeling that he has won, but then finds he has overpaid. In the case of Google, the auction might drive the price so high, there will be dearth of investors willing to buy.

Indeed Google list just such a problem in regulatory filings to the SEC.

Google is compounding this risk by only selling 10% of the shares.

Buying the shares involves hurdles as well. Investors will have to register at a special Google website. (Hope that one has been load tested!). Bids will then only be accepted through 28 US brokerage houses and banks. They will need to have an account before bids will be accepted.