Saudi Prince Alwaleed bin Talal is now one of the largest shareholders in General Motors.
The royal billionaire, one of the world’s wealthiest men, announced through a spokesman that he has invested $500 million in the U.S. automaker which, last week, staged a long-awaited initial public offering. The IPO proved far more successful than initially anticipated, in part due to the interest — and cash – of foreign investors.
According to a statement out of the oil-rich kingdom, Alwaleed’s investment arm, Kingdom Holding Co., acquired about 1% of GM stock. The maker sold 358 million shares of common stock as part of its return to public trading, along with another 80 million convertible preferred shares. The common shares were priced at $33 apiece, though KHC declined to provide the details of its purchase.
The investment firm did note that it was placing its financial bet based on “the global strength of General Motors brand, the relatively attractive offering price, and the company’s growth prospects in Brazil and China.”