Steven Rattner' wishes came true today, as American manufacturer GM announced it has decided to ask more and offer more in the upcoming initial public offering (IPO). Simply put, the price of in between $26.00 to $29.00 per share was deemed too little, and the 60 million shares of its Series B mandatory convertible junior preferred stock too few to satisfy the carmaker's needs and the buyers' appetite.
GM raised the price of one share to in between $32.00 to $33.00, closer to the expectations of former auto czar Rattner (who hoped for a price in between $35 or $40). The carmaker will offer now 80 million shares of its Series B mandatory convertible junior preferred stock.
The reasons behind the decisions were not announced officially, but are not hard to guess. The carmaker is said to have stirred so much interest in the investors' world with its IPO that this was the only logical step to take.
Before the increase in price and offering, GM hoped to raise around $10.6 billion and thus reduce the stake held by the US government.
Otherwise, the IPO remains as already announced. The move is being coordinated by a conglomerate of banks and financial institutions which includes Morgan Stanley, J.P. Morgan, BofA Merrill Lynch, Citi, Goldman, Sachs & Co., Barclays Capital, Credit Suisse, Deutsche Bank Securities and RBC Capital Markets.
GM has already filed a registration statement with the Securities and Exchange Commission (SEC), but it has not yet become effective. More details are expected to surface, even if there is no telling yet when exactly GM will make the IPO.
GM raised the price of one share to in between $32.00 to $33.00, closer to the expectations of former auto czar Rattner (who hoped for a price in between $35 or $40). The carmaker will offer now 80 million shares of its Series B mandatory convertible junior preferred stock.
The reasons behind the decisions were not announced officially, but are not hard to guess. The carmaker is said to have stirred so much interest in the investors' world with its IPO that this was the only logical step to take.
Before the increase in price and offering, GM hoped to raise around $10.6 billion and thus reduce the stake held by the US government.
Otherwise, the IPO remains as already announced. The move is being coordinated by a conglomerate of banks and financial institutions which includes Morgan Stanley, J.P. Morgan, BofA Merrill Lynch, Citi, Goldman, Sachs & Co., Barclays Capital, Credit Suisse, Deutsche Bank Securities and RBC Capital Markets.
GM has already filed a registration statement with the Securities and Exchange Commission (SEC), but it has not yet become effective. More details are expected to surface, even if there is no telling yet when exactly GM will make the IPO.