GM Seen Raising $10 Billion in IPO: Reports
DETROIT (
) --
General Motors
is expected to price its shares between $26 and $29 raising about $10 billion in an initial public offering, according to reports.
Meanwhile, the U.S. government is expected to reduce its stake in the automaker to around 43% from 61% not including any extra share allotments bankers may offer to satisfy strong demand, the
Associated Press
reports, citing three people brief on the IPO.
The IPO is expected to take place around Nov. 18.
The
Wall Street Journal
reports the U.S. will cut its stake in General Motors to about 35%, citing new figures the company plans to disclose Tuesday.
GM's new projections say it could have a stock-market value at the start of trading of $50 billion, about the same as
Ford
(F) - Get Report
, and that it could be as high as $60 billion, the
Journal
reports, citing people familiar with the plan.
GM won't make any money from the sale of the 365 million common shares in the IPO. Instead, it will sell roughly $3 billion worth of preferred stock that will convert to common stock in 2013, the
AP
reports, citing the people familiar with the sale. GM will use the money from the sale of preferred stock to repay loans and make pension payments.
Terms of the IPO aren't final because GM's board still has to approve them,
AP
says.
-- Written by Joseph Woelfel
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