GM will probably price its initial public offering at high end or above

Article by Christian A., on November 15, 2010

General Motors Co. will likely price its initial public offering at or above the high end of the range next week on Nov. 17 while exercising an option to sell more shares, according to two people who have knowledge of the IPO preparations.

These sources said that potential investors have shown a strong interest about the IPO to the six GM executives who went out to promote the IPO.

As a result, GM is thinking of selling its shares at the high end of the $26 to $29 offering range or above $30. The sources also said that one of the likely buyers is SAIC Motor Corp., GM's partner in China.

They added that GM will probably exercise its so-called greenshoe option, giving underwriters 54.8 million more shares. This would help the US Treasury Department recover more of the public's $49.5 billion investment in GM. Because of the strong demand for the IPO, GM could secure a higher price when the US sells most of its shares in later offerings.

One of the sources said that GM's offering of 365 million shares, or 24% of the automaker's stock, is already oversubscribed by multiple times.

GM’s regulatory filing indicated that without issuing the greenshoe, the Treasury Department's stake would drop to 43% from 61%. The filing further stated that if the overallotment option is used, the stake would fall to 41%. [via autonews - sub. required]

Topics: gm, ipo, united states

If you liked the article, share on:

Comments

Recommended

Volkswagen of America has a nice surprise for potential customers of the new VW Tiguan (2018 model year). The latest iteration of the Tiguan – set to arrive in the...
by - May 25, 2017
Toyota Camry is many things but exciting isn’t one of its frequent descriptions. That’s why throughout the years, Toyota has been stepping up its game for the said model in...
by - May 25, 2017
Volkswagen intends to leave the crowd in awe at the Worthersee Meeting (Wortherseetreffen) – the largest VW and Audi car show in Europe – with its new GTI Worthersee concept. ...
by - May 25, 2017
The much-hyped 2018 Dodge Challenger SRT Demon certainly has attracted a lot of attention, and possibly many potential buyers. Now, here is good news for interested customers: Dodge has finally...
by - May 25, 2017
An RHD (right hand drive) BMW M4 DTM Champion Edition has been listed to be for sale by Romans International, UK’s leading supercar dealership. The first owner of this rare...
by - May 24, 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