General Motors Finalizing $13 Billion Stocking Offering
The terms were finalized by General Motors for the stock offering deal that would repay the controversial $13 billion taxpayer funded bailout as well as help reduce the United States Treasury to a shareholder in the minority once again.
The final step prior to marketing what experts expect with be the biggest ever IPO was General Motor's filing with the United States Securities and Exchange Commission. It is expected that investors will span the globe to include sovereign wealth funds.
General Motors has made plans to sell three hundred sixty-five million common shares of stock, which is equal to twenty-four percent of its common stock. These common shares of stock will be sold at between twenty-six and twenty-nine dollars each, which should help General Motors raise close to ten billion once they have sold half of the shares.
General Motors is not only putting common shares of stock on the market, but it also has plans to sell three billion dollars worth of preferred shares as well, which can be converted into common shares under special mandatory provisions. Of course, this is a less risky type of equity, which could attract not only dividend investors, but also growth-fund investors as well.
It is estimated that the IPO value of General Motors would be just over forty-one billion dollars by the time midpoint of the selling of these shares has been reached. As a result, this would ensure that taxpayers from the United States would face a definite loss on the controversial bailout from General Motors. For General Motors to break even, then they would need a market value of close to seventy billion dollars.