Delphi Automotive Plc, formerly owned by General Motors Co., stated that its initial public offering was priced at $22-$24 a share, valuing the vehicle components brand at around $7.55 billion. The offering comes less than two years after the company exited bankruptcy.
The IPO would raise around $578 million at the midpoint of the projected price range, Delphi Automotive disclosed in a regulatory filing on Monday. The amount that it intended to raise is lower than the $1 billion it was originally targeting, an insider source informed Reuters last week.
Delphi Automotive further disclosed that the offering would consist of around 24.1 million shares from stockholders, including from hedge fund Paulson & Co, which is selling 20.6 million shares.
The company intends to list on the New York Stock Exchange. Underwriting of the IPO is led by Goldman Sachs and J.P. Morgan, with 18 underwriters. According to the filing, RBC Capital Markets is no longer part of the underwriters. The company itself is not selling any shares in the IPO.
In 2005, Delphi filed for bankruptcy after yielding to high costs for wages as well as legacy benefits inherited in its spinoff from U.S.-based General Motors in 1999.
Four years later, it emerged from bankruptcy with GM and hedge funds Elliott Management and Silver Point Capital LP, obtaining a controlling share in the company. Earlier this 2011, Delphi bought back the shares that Pension Benefit Guaranty Corp and GM held for around $4.4 billion in order to simplify its capital structure. [source: Autonews]