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GM to increase its IPO by up to $2bn
GENERAL Motors (GM) is considering raising the size of its common stock offering in its recently announced initial public offering (IPO) by 20 per cent to about $12bn (£7.4bn), a source close to the company said yesterday.
GM initially filed to sell about $10bn in common stock and another $3bn in preferred stock.
The increase in the common stock offering is in response to exceptional investor demand, the source said, adding no final decision had yet been made.
The GM IPO is currently expected to price between $32 and $33 per share, above the initially proposed $26 to $29 per share, another source familiar with the matter said.
The price range is preliminary and has not yet been formally set.