GM to begin courting investors for its IPO after elections

Article by Christian Andrei, 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:


Login or Create new account to add a comment!


More than three decades ago, the DeLorean DMC-12 was produced by the DeLorean Motor Company. However, production was stopped due to issues within the company. The car itself was decent...
by - October 27, 2016
Tesla is making sure that all models under production will receive the necessary advanced hardware that will allow them to be autonomously driven. The fitment of these advanced hardware to...
by - October 27, 2016
Wondering how fast the 2017 Chevrolet Camaro ZL1 in actual driving? To provide customers a good idea on how fast the 2017 Camaro ZL1 could really get, Chevrolet recently had...
by - October 27, 2016
So, it is official! The new Honda Clarity FCV has the longest verified range of any zero-emissions vehicle currently on the road in the United States. One of the main...
by - October 27, 2016
Many have been anticipating Mercedes-Benz Vans’ newest luxury pickup truck, the X-Class. While Mercedes-Benz has yet to reveal the official production version of the X-Class, it was kind enough to...
by - October 27, 2016