Detroit Bureau on Twitter

Posts Tagged ‘gm over-allotment’

Underwriters Boost GM Stock Sale By Additional 72 Mil Shares

“Over-allotment” generates additional $1.8 bil for U.S. taxpayers.

by on Nov.29, 2010

GM's IPO officially becomes the biggest ever with the successful sale of another $2 billion in common shares.

The underwriters of General Motors’ recent IPO have exercised an option permitting them to sell another 71.7 million shares, a so-called “over-allotment” worth $2.37 billion.

Along with another 13 million shares of convertible preferred stock, that brings the final tally for the automaker’s initial public offering to $23.1 billion, far exceeding the previous record IPO, the $19.5 billion raised by Visa in 2008.

The U.S. Treasury was able to sell another 54 million of its own shares through the over-allotment, worth $1.8 billion.  As a result of the IPO, taxpayers have now roughly halved their stake in the company critics dubbed “Government Motors,” after last year’s federal bailout.

http://www.thedetroitbureauYour News Source! Click To Subscribe!.com/about/subscribe

Get Charged Up! Click Here!

The IPO was held on November 18th and initially covered 478 million shares of common stock, worth $15.77 billion, as well as 87 million shares of preferred, worth $4.35 billion – a total just slightly exceeding the 2008 Visa offering.

The convertible preferred shares convert to common no later than December 1, 2013.  They carry a 4.75% dividend rate and a liquidation value of $50 apiece.