General Motors Expects To Raise $13 Billion From IPO

Posted Nov 4, 2010

There are some numbers being thrown around about how much General Motors expects to raise from their future IPO. They plan to sell about $13 billion in common and preferred shares as part of the IPO.

GM would sell nearly a quarter of their 1.5 billion shares in common stock at prices between $26-$29 per share. The automotive giant is also planning to sell 60 million shares of preferred stock at a price of about $50 per share.

Currently the Treasury Department owns about 60.8% stake in the company. Once the stock starts trading, the value of that 60.8% stake would then become worth between $23.7 to $26.5 billion. This is less than the $40 billion that the government plugged into GM to keep the company alive.

“If GM can’t sustain its current sales momentum, share value post-IPO will plummet,” stated CEO Jeremy Anwyl. “I still think the IPO is timed about a year too early; extra time is needed to reestablish credibility.”