The decision sees the target price fall by $10 billion to $26 billion.
The internet search engine announced that it was cutting back the price range for its initial public offering on Wednesday morning. Trading is still expected to commence this week.
Originally, the auction price had been set at between $108 and $135 per share, but the company revealed the estimated range would be reduced to between $85 and $95, after muted interest from investors.
Institutional investors are thought to be nervous about the high price, preferring to wait and see how the shares perform once trading begins.
In addition, the number of shares available via Dutch auction is also being cut back. Just 5.5 million of these shares will be sold, as opposed to the proposed 11.6 million.
The IPO's schedule has been held up by the US Securities and Exchange Commission and other regulators' delays in green-lighting the sale.
Google holds a 41 per cent share of the UK's search engine market, worth £350 million, according to the Internet Advertising Bureau.