[ White House Approves of General Motors IPO - NTDTV ]
NEW YORK—General Motors Co., the Detroit automaker, said on Wednesday that it would increase the size of its initial public offering (IPO) of stock this week by a third, due to increased demand from investors.
GM, the biggest U.S. automaker, is 61 percent government-owned after last year’s federally brokered bankruptcy. The company had planned to sell 365 million shares this week to decrease the government’s stake to 40 percent, a first step in becoming an independent company.
After last summer’s IPO, GM emerged a stronger but smaller company, shedding brands Pontiac, Saturn, Hummer, and Saab via discontinuation and sales. It also unloaded much of its debt and emerged as a company majority owned by the U.S. and Canadian governments and the United Auto Workers union.
Its IPO is widely viewed by analysts and company officials as a next step in its return to prominence.
But due to unforeseen demand from investors, GM is expanding the IPO sale.
GM, the biggest U.S. automaker, is 61 percent government-owned after last year’s federally brokered bankruptcy. The company had planned to sell 365 million shares this week to decrease the government’s stake to 40 percent, a first step in becoming an independent company.
After last summer’s IPO, GM emerged a stronger but smaller company, shedding brands Pontiac, Saturn, Hummer, and Saab via discontinuation and sales. It also unloaded much of its debt and emerged as a company majority owned by the U.S. and Canadian governments and the United Auto Workers union.
Its IPO is widely viewed by analysts and company officials as a next step in its return to prominence.
But due to unforeseen demand from investors, GM is expanding the IPO sale.
In a statement by the company and confirmed by a filing with the U.S. Securities and Exchange Commission, GM will increase the size of the share sale to 478 million shares. The original price per share range of $26 to $29 has been bumped up to around $32 per share.
The share sale will begin after market close on Wednesday, and GM’s stock will begin trading Thursday morning on the New York Stock Exchange.
Analysts say that the increased IPO could further reduce the Department of Treasury’s stake from the planned 40 percent to as little as 33 percent.
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