GM IPO Prospectus Released, Common Stock Will Range from $26-$29


As our earlier report stated, the General Motors initial public offering will indeed be priced from $26 to $29 per share. GM officially announced its long-awaited IPO earlier today, and the preliminary prospectus filing is in the hands of the United States Securities and Exchange Commission.

GM is set to offer 365 million shares of common stock and another 60 million shares of Series B mandatory convertible junior preferred stock. The preferred stock has a liquidation value of $50 and the IPO is forecasted to generate around $13 billion that will be used to repay GM’s debts. Although its television commercials suggest otherwise, GM is still on the hook to the federal government for about $49.5 billion.

Another 54.75 million common stock shares and 9 million preferred stock will be available to help cover potential over-allotments.

Underwriters for the IPO include Morgan Stanley and JP Morgan, BofA Merrill Lynch, Citi, Goldman, Sachs & Co, Barclays Capital, Credit Suisse, Deutsche Bank Securities, and RBC Capital Markets.

The IPO is expected to hit the open market November 18. GM will trade under “GM” on the New York Stock Exchange, and “GMM” on the Toronto Stock Exchange.

Readers interested in perusing the preliminary prospectus can see it on the SEC Web site HERE.

Source: GM

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