General Motors has priced its common stock offering at the higher end of US$33 – potentially allowing the automaker to repay up to US$23.1bn of its US$50bn taxpayer bailout.
Total offering size will be between US$20.1bn and US$23.1bn – believed to be the largest ever public offering.
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“As we prepare to enter the equity markets, all of us at GM are excited about this historic milestone,” said GM vice chairman and CFO Chris Liddell.
“We are especially appreciative of those who stood by us through the toughest times and we are dedicated to creating value for all of our stakeholders.”
The issue included 478m shares of common stock for a total of US$15.77bn and 87m shares of mandatory convertible junior preferred stock, for a total of US$4.35bn.
Underwriters have a 30-day option to purchase up to 71.7m additional shares of common stock from the selling stockholders, for a total of US$2.37bn and an additional 13m shares of mandatory convertible junior preferred stock from the company on the same terms and conditions for a total of US$650m to cover over-allotments, if any.
The common stock has been priced at $33.00 per share.
GM’s common stock will begin trading on November 18, 2010, on the New York Stock Exchange
“With a new business model, centred around designing, building and selling the world’s best vehicles, we’re ready to compete and are confident about the company’s future,” said Liddell.
