General Motors unveils its IPO details in a bid to raise $13bn

GENERAL Motors (GM) yesterday finalised terms for a stock offering of $13bn to repay a controversial taxpayer-funded bailout and reduce the US Treasury to a minority shareholder.

The automaker, led by boss Dan Akerson, plans to sell 365m common shares, or 24 per cent of its common stock, at $26 to $29 each, raising about $10bn at the midpoint, according to updated initial public offering papers filed with the SEC.

In addition, GM said it planned to sell about $3bn of preferred shares that would convert to common shares under mandatory provisions, a less risky form of equity that could attract dividend and growth-fund investors. The IPO would value GM at around $41bn, making it all but certain that US taxpayers would face a loss on the automaker’s bailout.