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.
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.