• Nov 3rd 2010 at 4:14PM
  • 30
As expected, following yesterday's nationwide election proceedings, General Motors has filed the details on its forthcoming Initial Public Offering with the Securities and Exchange Commission.
Targeting a share price range of $26.00 to $29.00, the company will offer 365 million shares of common stock. GM will also offer 60 million shares of Series B mandatory convertible junior preferred stock with a value of $50/share. According to The Detroit News, GM could clear $12 billion in common stock sales and a further $3.45B in preferred stock sales.

For its part, the federal government is expected to sell 263.5 million shares or more, and the Canadian and Ontario governments will look to divest 30.5 million of its shares in the automaker. The United Auto Workers also has a healthy chunk of GM, and it will reportedly seek to sell 71 million shares.

General Motors will trade under the "GM" stock ticker on the New York Stock Exchange. For the official press release, click past the jump.

[Sources: General Motors, The Detroit News]

Show full PR text
General Motors Company Commences $13 Billion Public Offering
Offer includes common stock and mandatory convertible preferred stock


DETROIT, Mich. – General Motors Company today announced it has commenced a public offering.

The offering will consist of 365 million shares of common stock to be sold by certain of its stockholders. The company will also issue 60 million shares of its Series B mandatory convertible junior preferred stock with a liquidation amount of $50 per share.
The estimated price range for the offering of common stock is $26.00 to $29.00 per share

Unless converted earlier at the option of the holder, each share of the Series B preferred stock will automatically convert on the mandatory conversion date, which is expected to be three years from the original issue date. The conversion provisions depend on the applicable market value of the company's common stock, and are subject to certain anti-dilution adjustments.
The underwriters have the option to purchase from the selling stockholders up to an additional 54.75 million shares of common stock and from the company an additional 9 million shares of Series B preferred stock, on the same terms and conditions, to cover over-allotments, if any.

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. Copies of the preliminary prospectus relating to the offering may be obtained for free, by visiting the SEC website at http://www.sec.gov. Alternatively, you may obtain a copy of the preliminary prospectus, by contacting:

• Morgan Stanley & Co. Incorporated, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014, telephone 1-866-718-1649, or by sending email to prospectus@morganstanley.com

• J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone 1-866-803-9204

A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About General Motors

General Motors, one of the world's largest automakers, traces its roots back to 1908. With its global headquarters in Detroit, GM employs 208,000 people in every major region of the world and does business in more than 120 countries. GM and its strategic partners produce cars and trucks in 31 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, FAW, GMC, Daewoo, Holden, Jiefang, Opel, Vauxhall and Wuling. GM's largest national market is China, followed by the United States, Brazil, Germany, the United Kingdom, Canada, and Italy. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors acquired operations from General Motors Corporation on July 10, 2009, and references to prior periods in this and other press materials refer to operations of the old General Motors Corporation. More information on the new General Motors can be found at www.gm.com.

Forward-Looking Statements

In this press release and in related comments by our management, our use of the words "expect," "anticipate," "possible," "potential," "target," "believe," "commit," "intend," "continue," "may," "would," "could," "should," "project," "projected," "positioned" or similar expressions is intended to identify forward-looking statements that represent our current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or financial results, and our actual results may differ materially due to a variety of important factors. Among other items, such factors might include: our ability to realize production efficiencies and to achieve reductions in costs as a result of our restructuring initiatives and labor modifications; our ability to maintain quality control over our vehicles and avoid material vehicle recalls; our ability to maintain adequate liquidity and financing sources and an appropriate level of debt, including as required to fund our planning significant investment in new technology; our ability to realize successful vehicle applications of new technology; and our ability to continue to attract new customers, particularly for our new products.
GM's most recent annual report on Form 10-K and quarterly reports on Form 10-Q provide information about these and other factors, which we may revise or supplement in future reports to the SEC.

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    • 1 Second Ago
      • 4 Years Ago
      That's great and all, but i need to know a particular DAY
      • 4 Years Ago
      Hey, If you guys make money on GM stock, best luck. GM Daewoo and the rise of China will keep GM keep in the top 3 automakers (Dumb Koreans lol). I don't like the enthusiasm on the Writer/Editor's part. GM IPO is a GO! (wow we should be excited, NOT).

      SInce LOTS of people lost tons of money on 'OLD' Grand Master's stock a few years ago. I wouldn't be surprised by insider trading during that decline, like how GM inside traded on Airlines a few days before 9/11. Anyway that's a seperate issue.

      The truth is that Americans are very patriotic to Global Automakers like Ford and GM. It is true that Ford and GM gives Jobs to thousands of Americans. Can't argue with that. We will see how far GM Stocks can go with very powerful influence on the world, GM Stock could sky rocket, if GM gets its costs down by bullying suppliers around the world. Hey that's business. Good for the consumer, bad for the supplier.
      • 4 Years Ago
      Here is an assessment of the IPO from an investor perspective: http://www.workgoesstrong.com/general-motors-goes-public-assessing-investment
      • 4 Years Ago
      Yea, exciting no? After the single largest auto manufacturers debacle in history, we are "thrilled" to see a stock offering. I think past GM high level management should be forced to buy as much of this stock as possible, and then turn it over to charity. I was a devout GM man for almost 50 years, ans last year I bought a new FORD. You know what? SO SHOULD YOU!!!
      • 4 Years Ago
      Assuming everyone sells the quantity of shares listed in the post, what % of total GM stock will each party (general public, UAW, US Government, Canadian Government, Ontario Government etc) hold?
      • 4 Years Ago
      I would like to know what they plan to do with the 12 billion dollars they will possibly make...
      • 4 Years Ago
      Can't wait to day trade this like I did Tesla.
      • 4 Years Ago
      I qualify to buy the IPO.
      Haven't learned how many I will be allowed to buy, but plan to buy as many as I can afford.
      GM is heavy in Red China right now as well as many other countries in the world.

      With the new middle class emerging in Red China ( because our jobs were sent there)
      They are hungry to trade in the burro for a car.

      I plan to be a millionare.
        • 4 Years Ago
        I got my 30 about 5 years ago.

        With the new middle class measured in the millions in Red China, there is bound to be a huge calling for autos.
        If thats what they call what they make over there.
        I have heard they would never pss safty standards here.
        But it beats walking. ; )
        Don't know how many I will be offered, but plan to take all I can afford.
        Good luck to you uawguy.
        • 4 Years Ago
        I'm with you. I got my preregistration email from MSSB and I'm ready to buy.
        I understand why so many people are angry and I don't blame them. Everyone has a right to be someting.

        For me, I think there is way too much hate in the world and it's time to
        give peace a chance. So I'll just buy a piece of an IPO and smile !

        Good luck gmguy!
      • 4 Years Ago
      Day traders are foaming at the mouth to time the bubble of the most hyped IPO in recent memory.
        • 4 Years Ago
        I'm sure they'll have some restriction on selling these, so they're not going to be great for daytrading until a little while later.

        The regular stock market is terrible, because the SEC constantly sets rules that favor the market maker and large institutional investors and make it extremely difficult for the little guy (like the daytrader).
      • 4 Years Ago
      I think the The United Auto Workers should keep theirs and not sell..
        • 4 Years Ago
        I do agree the UAW should not have any say...but I think it would be the best possible way to keep them tame...
        • 4 Years Ago
        Paul, of course the workers shouldn't have a say in the products they make. Never! Leave it to upper management to make all the decisions, the workers, eh, they are worthless!
        • 4 Years Ago
        You can't blame Luis - he spends all his time trolling, and never learned how to read D=
        • 4 Years Ago
        No, they should sell everything. The UAW shouldn't have a say in any company, ever.
      • 4 Years Ago
      When can I short this?
        • 4 Years Ago
        If you want to short it you should probably wait a couple of days after the IPO. You might want to consider GM's $50B in tax credits and how that might affect the bottom line before you decide to short.

        I will personally watch from the sidelines because I don't like to gamble. I hope GM succeeds so taxpayers get as much as possible back from our investment in a healthy US auto manufacturing industry.
        • 4 Years Ago
        FitFan - most sensible comment about the IPO I've heard so far. It's a gamble, but I hope it works out for all of us.
      • 4 Years Ago
      The GM Initial public offering is really very huge. To adjust inflation the investment bankers have to exercise the over allotment option. The extra shares companies provides the bankers to ensure that everything works fine after the stock trading starts.
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