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 17,712.66 34.43 0.19%
Nasdaq 4,891.22 27.86 0.57%
S&P 500 2,061.02 4.87 0.24%
Treasuries 1.95 -0.06 -2.94%
Data as of 10:37pm ET
Company Price Change % Change
Intel Corp 32.00 1.92 6.38%
Bank of America Corp... 15.31 -0.11 -0.71%
Ford Motor Co 15.98 -0.03 -0.19%
Apple Inc 123.25 -0.99 -0.80%
Microsoft Corp 40.97 -0.24 -0.58%
Data as of 4:06pm ET
Sponsors

Sections