GM Commences $13 Billion Public Offering

[FenwickHockey65]

General Motors Company Commences $13 Billion Public Offering
Offer includes common stock and mandatory convertible preferred stock
Link to Press Release

November 3, 2010

DETROIT, Mich. – General Motors Company today announced it has commenced a public offering.

The offering will consist of 365 million shares of common stock to be sold by certain of its stockholders. The company will also issue 60 million shares of its Series B mandatory convertible junior preferred stock with a liquidation amount of $50 per share.

The estimated price range for the offering of common stock is $26.00 to $29.00 per share

Unless converted earlier at the option of the holder, each share of the Series B preferred stock will automatically convert on the mandatory conversion date, which is expected to be three years from the original issue date. The conversion provisions depend on the applicable market value of the company's common stock, and are subject to certain anti-dilution adjustments.

The underwriters have the option to purchase from the selling stockholders up to an additional 54.75 million shares of common stock and from the company an additional 9 million shares of Series B preferred stock, on the same terms and conditions, to cover over-allotments, if any.

Morgan Stanley and J.P. Morgan (representatives of the underwriters), BofA Merrill Lynch, Citi, Goldman, Sachs & Co., Barclays Capital, Credit Suisse, Deutsche Bank Securities and RBC Capital Markets will be the joint book-running managers for the offering. Copies of the preliminary prospectus relating to the offering may be obtained for free, by visiting the SEC website at http://www.sec.gov. Alternatively, you may obtain a copy of the preliminary prospectus, by contacting:

* Morgan Stanley & Co. Incorporated, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014, telephone 1-866-718-1649, or by sending email to prospectus@morganstanley.com
* J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone 1-866-803-9204

A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

[v6sonoma]

Great news! GM has announced it's IPO!

http://www.autoblog.com/2010/11/03/gm-ipo-is-go/

As expected, following yesterday's nationwide election proceedings, General Motors has filed the details on its forthcoming Initial Public Offering with the Securities and Exchange Commission.

Targeting a share price range of $26.00 to $29.00, the company will offer 365 million shares of common stock. GM will also offer 60 million shares of Series B mandatory convertible junior preferred stock with a value of $50/share. According to The Detroit News, GM could clear $12 billion in common stock sales and a further $3.45B in preferred stock sales.

For its part, the federal government is expected to sell 263.5 million shares or more, and the Canadian and Ontario governments will look to divest 30.5 million of its shares in the automaker. The United Auto Workers also has a healthy chunk of GM, and it will reportedly seek to sell 71 million shares.

General Motors will trade under the "GM" stock ticker on the New York Stock Exchange. For the official press release, click past the jump.

This is great because by issuing stock they get more capitol to invest in future products. (Like the 6th gen camaro!)

[truth411]

And...here...we...go...

[Milk 1027]

hmmm. Thinking of buying some stock for the first time.....

[FenwickHockey65]

http://www.camaro5.com/forums/showthread.php?t=114003

[SC2150]

This is SOOO unfair to every other public company that has had to meet all financial obligations to stock & bond holders as the government not only bailed them out, but they left all investors holding nothing, and now they do a new IPO?

Amazing.

[UCI CamaroFan]

I too am thinking about buying some stock. I think I will grab 1000 shares... if I can get in on the IPO. I dont know if I want to buy on the spot market.

After having a hell of a run in September and October, I cashed out and was 100% cash until today. Today I bought a nice bit of an oil company that I expect to do well.

[DGthe3]

What percentage of GM's stock is getting sold off? I thought the idea was to sell some of it in the IPO, then release more a while later on when its price goes up.

[1bad65]

Originally Posted by SC2150

This is SOOO unfair to every other public company that has had to meet all financial obligations to stock & bond holders as the government not only bailed them out, but they left all investors holding nothing, and now they do a new IPO?

Amazing.

True. 100% true.

Look, you fans of GM who want to buy stock, go right ahead. It's your right. But use your HEAD, not your HEART. A perfect example is WWF/WWE. When they decided to go public in 2000, wrestling fans couldn't wait to buy it. They loved the product and the WWF/WWE was turning a profit. So they bought in on the IPO. It opened at ~$24/share. Now 10 years later, the stock has NEVER broken what it opened at. Never.

Look at GM's books, and look at their balance sheet and use your HEAD. If the numbers look good, your chances of making money on the stock are good, if the numbers don't look good, you're likely throwing money away. Just a word of caution.

And before I'm called a hater, I want to say I hope everyone who invests in GM makes money. I'm (and SC2150) just throwing out a few facts any intelligent, educated investor should look at.

[SC2150]

I was a series 24 principal & compliance officer for firms for years and have seen it all. That was 15 years ago when I retired from it, but when my tech company was aquired 8 years ago it was an all stock deal, and at the time the company that aquired mine (VoIP) was trading at $5 a share and it would have put $over $8 mil in my pocket. Being a principal & officer of the company I had a 2 year holding peroid before able to sell any....it was $1.50 at that time and went to .03 cents by the time I had it all free trading. Now is worthless. I did hit the bid with what I could but came out w/less than a $mil and it was prety sad. Especcially since they spun off my old company to a Chinese concern and it is booming here in the states.

Thats the market for you!

Hard to say where GM will go from here, but I still love the products they produce. :thumbsup"

[The_Blur]

[Brokinarrow]

If I do buy in it will only be a couple shares, so if they don't go anywhere it won't be a big deal, just disappointing.

[The_Blur]

Autoblog seems to recommend buying.

[UCI CamaroFan]

i just put down for 300 shares. I decided to go with 300 instead of 1000

So, I hope it rallies like hell from the start