Show Hide image

GM seeks to raise $13bn from Public Offering

Stock offering hoped to reduce US and Canadian government stakes in the firm.

General Motors has finalised terms for a stock offering it hopes will raise around $13bn (£8bn) in a bid to reduce the US and Canadian governments' stakes in the company.

GM said it plans to sell 365 million shares, almost a quarter of its 1.5 billion shares of common stock, at between $26 and $29 each, as well as 60 million preference shares at $50. The automaker plans to raise about $10bn at the midpoint of the price range.

GM's regulatory filing with the Securities and Exchange Commission on Wednesday is the final step before it begins marketing its IPO.

GM is currently a private company controlled by the US Treasury and is looking to reduce the government treasury to a minority shareholder while attempting to repay its taxpayer-funded bailout.

The price range suggests that the treasury's stake would be worth $23-$26.5bn, way below the taxpayers' bailout of $40bn provided to the company.

However, Chris Liddell, GM's chief financial officer, exuded confidence that the company would deliver a solid and profitable first year post-bankruptcy, and would continue to improve its balance sheet.