GM shares to be priced between $20 and $25 in the initial public offering (IPO)
By Andrew, 14 Oct, 2010. 0 Comments
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According to Chairman Ed Whitacre, it appears that GM shares are likely to be priced between $20 and $25 in the initial public offering (IPO) in November. Although sources knowledge of the developing deal confirmed the fact that the shares will be priced near the $20 to $25 range, today it was the first time when GM has commented on the issue. "It's a little too early to say, but it is going to be somewhere in the $20 range... $20, $25, something like that would be my guess," Whitacre said. "It's a little too early to tell, but somewhere in there," he added.
A pitch to retail investors is expected to be a major focus in the GM IPO, although U.S. securities regulations don’t allow this. Earlier today, we revealed you the fact that GM extended a deadline for 600,000 workers, retirees and dealers in the United States and Canada, in order to register to buy shares in the IPO.
Whitacre couldn’t say how large GM IPO would be, but he predicted that it will be a success in reducing U.S. government's 61 percent stake in the top U.S. automaker. For those who don’t know, the Obama administration gave GM $50 billion in U.S. taxpayer funding. [via autonews - sub. required]
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