GM to begin courting investors for its IPO after elections

Article by Christian A., on September 3, 2010

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]

Topics: gm, ipo

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Carmakers usually leave us thirsty for information on whether they would introduce a new, refreshed or face-lifted vehicle and on when they intend to launch it. There are reasons for...
by - February 20, 2017
Cadillac’s CT6 full-size prestige-luxury sedan is still somewhat new. It has been offered to the global auto market for two model years – 2016 and 2017. But for those who...
by - February 19, 2017
In many industries, it is the rivalries that make things exciting. In basketball for example, there is the well-known rivalry between the Los Angeles Lakers against the Boston Celtics. For...
by - February 19, 2017
Now on sale in several major markets around the world including Europe, the BMW 5 Series (G30) heralds the arrival of the new seventh generation and represents a whole new...
by - February 19, 2017
Just recently, it was speculated that a new Porsche Cayman GT4 RS is coming. There is no official confirmation yet from the German sports car maker, but the arrival of...
by - February 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries