Report: GM stock IPO details coming Tuesday
General Motors Co. on Tuesday is expected to announce size and pricing details of its long-awaited stock offering.
Reuters, citing unnamed sources, is reporting that the auto giant will offer 365 million shares to the public, hoping to fetch between $26 and $29 a share.
The shares would be sold by GM’s current major owners -- the U.S. Treasury, the Canadian government and the United Auto Workers -- all of which helped bail out the company in 2009 after it filed for bankruptcy.
The IPO is expected to reduce the U.S. Treasury's stake to 43.3% from the 60.8% it currently has, not including the overallotment option, one of the sources said. The governments of Canada and Ontario are expected to sell down their stake to 9.6% from 11.7% and the UAW VEBA trust is expected to sell down its stake to 15% from 17.5%, that source said.
The company expects to launch its investor roadshow for the deal on Wednesday, Reuters said. The IPO would be priced to investors on Nov. 17; the stock would begin trading on the New York Stock Exchange on Nov. 18.
The Treasury has previously said it wants to make sure that GM gives small investors “ample opportunity” to buy the shares in the IPO -- if they want it.
The Treasury is expected to continue selling its GM shares to private investors, via so-called secondary stock sales, over the next two years or so, until the government finally cashes out completely and GM is returned to 100% private ownership.
-- Tom Petruno