• Nov 16th 2010 at 10:28AM
  • 24
If you've been squirreling away your pennies in anticipation of General Motors' IPO, we've got news for you. The company released a statement this morning announcing that it has increased its stock price from $26 to $29 per share to $32 to $33 per share. Additionally, General Motors is now planning to offer 80 million shares worth of junior preferred stock at a combined value of $4 billion – up from the initial $3 billion. The news comes after Steven Rattner, the former auto advisor for the Obama Administration, said that he expected the stock to price above the range that the GM initially filed for.
With the new outlook, GM will likely raise a good deal more than the $10.95 billion the company stood to drum up at $30 per share. The automaker's stock is expected to price sometime today before public trading begins tomorrow. Hit the jump for the official press release.

[Sources: General Motors, Reuters]
Show full PR text
GM Raises Stock Offering Price Range and Increases Size


Common Stock Price Range Increased to $32.00 to $33.00
Convertible Preferred Stock Offering Increased by $1 billion

DETROIT, Mich. – General Motors Company today announced it has increased the estimated price range for the offering of 365 million shares of common stock to be sold by certain of its stockholders to $32.00 to $33.00 per share from the previously estimated price range of $26.00 to $29.00 per share.

The company also announced that it has increased the proposed size of its Series B mandatory convertible junior preferred stock offering from $3 billion to $4 billion, consisting of 80 million shares, excluding the amount that the underwriters have the option to purchase to cover over-allotments, if any. The final terms of both offerings will be determined at the time of pricing.

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 Securities and Exchange Commission (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 an 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.

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    • 1 Second Ago
      • 4 Years Ago
      It's encouraging hearing these figures on the eve of the IPO.

      GM could certainly have been left to twist in the wind. All their employees out of work, all their assets put up on the block. And the Chinese would have gladly bought up the whole thing and gotten themselves an instant chunk of the NA market share...

      Surely this was better?
      • 4 Years Ago
      i agree with Nick,
      The government would not let major companies go out of business in a bad economy. That would just take even longer to get out of a recession. There are also so many companies that also would go out of business as well if the auto companies died.
      • 4 Years Ago
      Hmmm, so it's basically a no-win by your reasoning.

      If the IPO were a flop than it clearly made no business sense.

      If the IPO is a huge success there are backroom deals.

      Given that, what WOULD have worked?
        • 4 Years Ago
        You can't reason with them. They feel like the money was stolen and there shouldn't be any praise given to the thief for bringing it back later, even if it is with interest.

        They would rather had the three companies go under (and yes I said three because Ford was there with them as moral support even though they didn't take bailout money, but they knew their company would go down if GM and Chrysler did too) and left a huge hole in our economy. They are convinced that this would not have had a ripple effect and put all of us in a bigger bind and that their jobs are so distant from the plight of the Detroit autoworker and executive that their lives would not have been affected at all.

        You can't reason with ignorant people like that who don't understand that our government had no choice but to prop up this huge portion of our economy and not allow it to fall considering the plight of our country. Our need to build something in this country is far too great an asset to let go and the fact that we can not continue to have an economy based solely on wall street banks and balloned real estate values.
        • 4 Years Ago
        I hope they (the government) does end up making money off of this deal. They can use some of the money to help pay for their socialized health care system. Better yet, they can use some of it to help prop up social security so someone that's my age (30) will actually be able to receive it before it goes bankrupt.
      • 4 Years Ago
      I wonder what the Beck-worshipping Tea-Boogers will complain about once the Obama Administration recouped its investment into GM after saving it.
        • 4 Years Ago
        "Your childish name calling aside, it still does not set a good precedent for the government to pick "winners" in a free market with taxpayer money.

        The people spoke loud and clear November 2nd. The government needs to get out of the auto business, the banking business, and the health care business and create an environment that will create jobs and not continue to stifle them."

        Not good for govt to pick winners? Said who? And how is this "picking winners" ? The govt intervened to prevent a colossal disaster that would have wiped out tens of thousands of jobs. How about that? Stop playing with words you heard on tv and use your brain.

        The govt needs to, and IS going out of the auto business. What part of IPO don't you understand? It already exited the banking business and got most of its money back in addition to interests. Oh and for Healthcare, I am absolutaly amazed that lille guys like you approve that the hugely profitable insurers can cut you off as soon as you get sick. You've obviously been brainwashed by some hot-headed talking head.
        • 4 Years Ago
        Your childish name calling aside, it still does not set a good precedent for the government to pick "winners" in a free market with taxpayer money.

        The people spoke loud and clear November 2nd. The government needs to get out of the auto business, the banking business, and the health care business and create an environment that will create jobs and not continue to stifle them.
      • 4 Years Ago
      i think GM's stock price is pretty high considering how they just told us not to long ago that they are out of bankruptcy, a lot of surveys asking if "you would buy GM stock" the majority says no.
      • 4 Years Ago
      To #3, highclimber. GM employees can buy in blocks of 50 shares. 50-100-150 up to 800. Thats the hourly workers, don't know about salary, most likley depends on how high up you are as to what shares of what you can buy.
      • 4 Years Ago
      Rattner said on NPR this morning GM could raise $40-45 billion out of the $50 billion they owe the US taxpayers.

      All politics aside, if this comes to fruition, I will be very glad to get back 90 cents on the dollar after so many said it was going to be far, far worse. (There are still plenty of empty cubicles at my work from the dark days of 2008).

      Good news for our overall economy.

      • 4 Years Ago
      I wonder how stock the Chinese are going to buy.
      • 4 Years Ago
      While I make no claims that I am a professional trader, evaluator, looking at market share and their current lineup, what is dictating that on a per share basis, GM is twice as valuable as Ford?

      I still believe that the GM price is being overinflated by individuals who don't want to "miss out" on GM like they did with Ford.
        • 4 Years Ago
        If you are comparing the price of a share of Ford versus the price of a share of GM, then you are missing a very fundamental issue of finance: they have different numbers of shares outstanding.

        Share price != market valuation
        • 4 Years Ago
        You already have asked this question and it has already been answered

        AB Ho from "Is the New GM a Buy?"

        "GM's share price compared to Ford's share price has no bearing on whether or not it's a good value. Ford could do a reverse split and make their stock valued at $50/share which doesn't affect total market cap or P/E ratio."

        and then I replied

        "@AB Ho

        Thank you, the price of a share has very little relation to the value of a company. I think AutoBlog needs to come out and explain this to everyone so I don't keep reading the same "Well Ford is only at $14 so WTF?" comment. (No offense to RG as he's certainly not the first or last to make that mistake)"

        While this certainly isn't a perfect explanation it will hopefully help you understand
      • 4 Years Ago
      Unless you have $500k or more in trading assets you aren't going to be able to get in on the IPO. The trading houses aren't even taking any more orders and the small day trading investor has no hope of getting in on it.

      This IPO was set up from the get go to make money for the US government and major institutional trading firms. It is as much of a joke as the GM bankruptcy.

      The backroom deals for this scam will be talked about in the private rooms of the stock exchange for generations. Remember the goal of an IPO is to buy at the opening price by making backroom deals and then manipulate the price up to your preset limit, then sell to the poor saps who try to get in on the rising stock only to find they are stuck buying at a far higher price than they thought and then lose their shirts over the long run.
        • 4 Years Ago
        Yo guys, I'm fresh out of Kleenex, you'll have to use your shirt tails or the back of your hands to wipe all your tears away.

        "Or we could go on over to mamby-pamby land YOU JACK-WAGONS" - Gunnery Sgt. in GEICO ad.

        It's not about you getting a good deal jerk-offs, It's about the US government getting the "Tax-Payer's" money back. Remember all the wailing and gnashing of teeth that went on when the government "gave away" YOUR tax dollars? Now you're all mad that recouping said tax dollars, is getting in the way of you making an easy buck. Boo Hoo Hoo, cry me a freaking river.
        • 4 Years Ago
        Exactly. It's a govt conspiracy to fleece us 'joe the plumbers' out of our hard earned money and give it to the rich! They should have left GM die because "free market" saves everything! Go Toyota right?
        • 4 Years Ago
        Employees and retirees can get shares (I think in $1000 increments). But otherwise, you are correct.
        • 4 Years Ago
        For those of you new to this sort of thing, this is what you call the "pump". The plutocrats would not let this play out any other way.
        • 4 Years Ago
        @High Climber, yes employees and retirees can purchase, most have already. I believe at $32 it's till a bit undervalued, look for this stock to increase by 50% within the year.
        • 4 Years Ago
        All IPOs with a lot of press behind them are prettymuch locked down before joe average could pick up the phone to a broker. You're singling out GM for a flaw that permeates the entire IPO industry.
      • 4 Years Ago
      Its a total disgrace to see what GM's management is upto by letting SAIC (Chinese State/Government owned Company) to pay up US Govt.
      Haven't these people had enough examples of Chinese stealing American Intellectual Property. GM doesn't have to look far, it had to deal with a photo copy version of their small car SPARK.
      Its plain stupid to put short term interests instead of looking at long term.
      I will never ever buy a GM again.
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