Ten Investment Banks Working On The GM IPO

Posted Aug 19, 2010

There are 10 investment banks that are working with General Motors for their upcoming initial public offering. This is the largest number of banks to ever work on a U.S. IPO according to Dealogic. The following companies are working with General Motors:

1. Morgan Stanley
2. J.P. Morgan Chase
3. Bank of America Merrill Lynch
4. Citigroup
5. Goldman Sachs Group
6. Barclays Capital
7. Credit Suisse Group
8. Deutsche Bank
9. RBC Capital Markets
10. UBS

Each of these firms are committing $500 million each as part of a credit facility to GM, adding up to a total of $5 billion. There have only been 3 other equity capital market deals that had a large number of banks working together like this, but those were all follow-on offerings according to Dealogic.

The government is selling 60.8% of common stock in the market. This is part of the $50 billion bail-out the government bought in the automotive company.

Blackstone Group, Morgan Stanley, and Evercore Partners are working with GM on restructuring their business. And Lazard is advising the U.S. Treasury on the IPO.

The government bought $2.1 billion in preferred stock in GM last year, but does not plan on selling that ownership during the IPO. The UAW owns 17.5% of GM through a retired workers health care fund. According to Wall Street Journal sources, the deal is expected to be worth around $10-$20 billion.