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

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