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GM raises stock offering price range and increases size

General Motors Company has increased the estimated price range for the offering of 365 million shares of common stock to be sold by certain of its stockholders to $32.00 to $33.00 per share from the previously estimated price range of $26.00 to $29.00 per share.

The company also announced that it has increased the proposed size of its Series B mandatory convertible junior preferred stock offering from $3 billion to $4 billion, consisting of 80 million shares, excluding the amount that the underwriters have the option to purchase to cover overallotments, if any. The final terms of both offerings will be determined at the time of pricing.

Morgan Stanley and J.P. Morgan (representatives of the underwriters), BofA Merrill Lynch, Citi, Goldman, Sachs & Co., Barclays Capital, Credit Suisse, Deutsche Bank Securities and RBC Capital Markets will be the joint book-running managers for the offering.



Will this get all the taxpayer's bailout funds/interest back and are future GM bailouts illegal?


The latest response is that $60 billion are in line for the deal. $32 per share is closer to the price and they could get more than $20 billion. The U.S. government will become less than 50% ownership soon enough.


Looks like the street is smiling on this IPO - rarely does a new issue bump its price UP - unless there is a pent up demand.

If the crowds at the recent Seattle auto show are any indication - this IPO, and the Volt are already in high demand. Real world commuters (not distance test drivers) report 200+MPG when driving near 40M commutes and weekend jaunts to country and friends.


I was watching Kudlow on CNBC tonight at the gym and they were talking about this with Phil Lebeau (CNBC's auto industry specialist). Apparently, common investors like you and I will NOT be able to buy the stock right away on Thursday morning for the IPO. We, the taxpayers, bailed out GM with our tax money, but we (or the vast majority of us anyway) will NOT be able to buy stock during the IPO...which is really disgusting.


They also talked about how the stock price will have to hit $54 a share for the federal government to recoup the ~$60 billion bailout...GE needs to plan on buying more Volts!


Right, the brokers hold IPO shares for their "preferred" customers. No big deal. IPO shares go up in the first week and then down. I would wait even if I could buy shares at IPO offer.

It will be interesting to see if the full bailout plus interest is returned to the Fed in near term. If so, from a purely economic point of view - investing in rehabilitating certain industries is a profitable venture for taxpayers.


Right; the government kicks out CEO Rick Wagoner (who presided over the development of the ill fated, limited edition Volt), takes the assets from the legally preferred stockholders and gives them to the unions.

And now GM apparently gets a $45 billion tax deduction – AFTER the company was bailed out. http://www.theepochtimes.com/n2/content/view/45340/

But at least, finally, GM is making the vehicles people WANT - the Silverado PU is the #2 selling light vehicle after the #1 Ford F Series PU, ahead of the Camry, Accord, Altima, Corolla, CR-V, Sonata, Fusion, Ram PU, Civic, RAV4, Escape, GMC Sierra PU, Equinox, Grand Cherokee, Focus, Impala, Malibu, and Jetta.

Ford should have been forced to accept a government loan, just like the banks were.

Without the unbridled capitalism of Ford, the Silverado would be #1.


Just saying things does not make them so. Everyone has their slant on GM and whether they should have been helped. All I know is a LOT of jobs would have been lost if they had not helped. Now they are turning around and all we get is criticism. I guess there is no end to that.


I was reading articles today about this stock offering and the "great turn-around success" of GM.
The only "success" these articles spoke of was this god-awful expensive IPO GM is shilling out. And, of course, it was only the Wall Street yahoos who were claiming this a "success".
I almost shat myself laughing...


Toppatom - GM is making the vehicles people want? Oh, really? May I ask then why they are only selling the fuel efficient vehicles to China? May I ask why the majority of their marketing research in on the Pacific Rim? Or why this wonderful American company is building auto factories in any other nation but America?
You think people don't want fuel efficient vehicles? Or plants built here which would make cars that can ship anywhere else in the world?
Ohhh, that's right. It's the workers' fault for wanting a livable wage and standard safety and environmental measures. Right, right, right. Yeah, too bad the all the American workers can't simply become slave labor and suffer and die like the Chinese laborers. Yeah, it's the workers' fault....


If a worker can buy a house in another country for $10,000 then they can make $5 per hour and live well. In the U.S. the median price for a house was bid up to $300,000 before the crash. Maybe more affordable housing could help the situation. No one ever said how we were suppose to compete with low wage labor. It was all suppose to be the service sector, which does not pay as well a manufacturing.


Meanwhile GM raises more than $21B in a single offering. Not bad for a company bankrupt just a few months ago. Remember folks - it is electrification we are after. If we keep whining over the past and gnashing teeth about the EV(yawn)1 crushing event... we'll never get there.

GM is doing a brilliant job of returning their status to fully active player in the the global transport market. This is no small feat - to raise this money. Let's see Fisker or Aptera do it.


We will see, is the key phrase. GM has to continue to do well. When asked if he will work for GM for a long time, the present CEO said the board is backing him (for now).

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