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]

If you liked the article, share on:

Topics: gm, ipo

Comments

Recommended

Earlier in November at the 2017 SEMA Show in Vegas is when Hennessey unwrapped the Venom F5 to all of us. But it was actually first introduced as a concept...
by - November 22, 2017
Mercedes-Benz just made an announcement that the 2018 E Class Cabriolet has finally landed in the United States. If you had not known, the E Class will be positioned in...
by - November 22, 2017
After a somewhat successful fray into the automotive market in China, the resurrected German automobile brand Borgward is finally heading to Europe, bringing along with it the Borgward BX7 sports...
by - November 22, 2017
Automotive industry veteran Bob Lutz has once again spoken out against Tesla. Known as one of Tesla Motors’ greatest skeptics, Lutz had stated two years ago that the Silicon Valley...
by - November 22, 2017
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
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