GM raises IPO target price

By Charles Riley, staff reporter


NEW YORK (CNNMoney.com) -- For investors eager to buy GM shares, the target price just went up.

General Motors raised the estimated price for its initial public offering of 365 million shares Tuesday to $32 to $33 from its previous estimate of between $26 and $29 per share.

The automaker also announced an increase in the number of converted preferred shares it plans to sell, boosting the amount it expects to raise to $4 billion from $3 billion.

As a result, the total size of the offering is now expected to be close to $16 billion. GM had previously announced plans to sell about $13 billion in common and preferred shares as part of its IPO, one of the largest in U.S. history.

After the taxpayer funded bailout of GM, the Treasury Department is among the key stakeholders in the company. Treasury has indicated it will hold onto most of its stake for an undetermined time to avoid flooding the market with GM shares and driving down the price.  To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 16,718.49 -86.22 -0.51%
Nasdaq 4,389.66 -32.43 -0.73%
S&P 500 1,932.03 -14.13 -0.73%
Treasuries 2.41 0.01 0.33%
Data as of 12:11pm ET
Company Price Change % Change
Bank of America Corp... 16.72 -0.11 -0.62%
Apple Inc 98.54 -0.64 -0.65%
Facebook Inc 76.09 -0.46 -0.60%
Ford Motor Co 14.52 -0.07 -0.51%
Intel Corp 33.44 -0.55 -1.62%
Data as of 11:56am ET

Sections

The bull market hit some turbulence in September, but that didn't stop these stocks from generating lots of interest from investors. More

Linda Tirado's post about her life in poverty went viral in 2013. She is now the author of 'Hand to Mouth.' More

While big chains are telling customers to stop bringing in guns, some small restaurants are embracing them. More

Linda Tirado's post about her life in poverty went viral in 2013. She is now the author of 'Hand to Mouth.' More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.