GM on course to move ahead with its IPO during mid-November

Article by Christian A., on October 15, 2010

Sources say that after meeting with sovereign wealth funds, General Motors Co. is on course to move ahead with its initial public offering during the week of Nov. 15.

Many are closely monitoring the events surrounding the GM IPO because of its expected scale and due to the involvement of the US government, which is hoping for a very successful stock offering to reduce its nearly 61% stake.

Sources added that the bankers who represented GM have met with sovereign wealth funds in Asia and the Middle East in the last two weeks to convince them that GM has emerged from its 2009 bankruptcy as a leaner and more dynamic competitor.

One source said that with regards to those meetings, the following were approached: Singapore-based GIC and Temasek Holdings, Kuwait Investment Authority, Qatar Investment Authority and the Abu Dhabi Investment Authority.

 It was also revealed that concurrently, analysts from the 10 underwriter banks involved in the GM IPO have started a series of meetings last week in order to reach a consensus on the market value.

The sources said further that after analysts come to consensus on that valuation, GM will give investors a discount of 20% from that level in pricing shares for the IPO. It’s standard practice to give this margin of discount in IPOs to reward investors for taking a risk on a new issue. [via autonews - sub. required]

If you liked the article, share on:

Topics: gm, ipo, united states

Comments

Recommended

Dubai is one of the few countries where expensive cars are the norm, many of which are specially modified as well. And this just in: Bentley has debuted the new...
by - November 21, 2017
The 2018 Jaguar XEL with its stretched-out wheelbase and longer doors is the newest addition to the growing list of premium sedans in China---joining the ranks of Mercedes-Benz C-Class L,...
by - November 21, 2017
Honda this week announced that its all-new 2018 Clarity Plug-in Hybrid will arrive at US dealerships with a starting price of $33,400 beginning on the first of December. Because the...
by - November 21, 2017
Lamborghini had been expected to refresh its entry-level model – the Lamborghini Huracan – in late 2018 or early 2019. But here is some good news for fans of the...
by - November 20, 2017
The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 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