Sources reveal that General Motors Co. intends to start courting investors for its initial public stock offering immediately after the US mid-term congressional elections on Nov. 2.
They added that GM's roadshow will start on November 3 and will end after two weeks. It’s expected that the IPO will price on Nov. 17 and debut on Nov. 18.
The sources warn though that the plans are in the process of being finalized and could still change based on the performance at the US stock markets. GM chose to wait until after the elections so that bankers will have the chance to promote GM's third-quarter financial results to investors.
However, GM cautioned that there will be a slowdown in the second half of the year when compared to the first half.
In August, GM filed paperwork for an IPO that could be worth up to $20 billion, which makes it potentially one of the biggest IPOs of all time. It’s also likely to be the biggest new issue in the US since Visa Inc.'s March 2008 IPO of $19.7 billion.
The final value of the IPO has yet to be set but one source said that early plans for the IPO predicted selling $12 billion to $16 billion in common stock and $3 billion to $4 billion in preferred stock that would convert to common stock under a mandatory provision.
GM filed the documents for its IPO only a little over a year after it emerged from a sponsored restructuring in bankruptcy. The US government gave $50 billion to GM and received a 61% stake. [via autonews - sub. required]