Can you comment on why more companies do not IPO using dutch auctions? Is it more complex/riskier for the company, than the traditional IPO model? Since its my assumption, an auction will get the company a fairer value for their stock.
The game that wall street plays with regards to IPO is simple: I'll let you buy in most of your shares at 10 dollars if you will buy a few shares at 20 dollars when the IPO opens. This way, the average price is much closer to 10 dollars, yet it convinces others to participate in the IPO trade.
As far as the companies are concerned, the runners ensure that there is institutional demand before the IPO goes public, to ensure that the company can actually sell the requested number of shares. It's much easier to follow Wall Street's rules (and leverage their capital relationships) than to stake out on your own (essentially what google did).
In retrospect, Google the firm paid dearly, as was evidenced by the resulting price rise.
At the end of the day, the company needs to receive cash from somewhere and the banks don't want to carry the risk, so they offload it to their customers (who front the cash), and they essentially offload it to the public.