SAN FRANCISCO (MarketWatch) — General Motors Co. said Friday that its public offering grew to $23.1 billion after underwriters exercised their rights to buy a big chunk of the auto maker’s stock.
GM announced that the underwriters exercised in full their overallotment options to purchase an additional 71.7 million shares of common stock from the selling stockholders. At $33 each, that’s $2.37 billion.
The underwriters also bought an additional 13 million shares of mandatory convertible junior preferred stock from GM, for a total of $650 million.
White House lauds GM IPOThe head of the White House task force on the auto industry called General Motors’ offering a fair value for the company and for taxpayers. Video courtesy of Reuters.
The convertible offering was done at the same time as the common-stock sale, which returned GM to the stock market after the U.S. government’s bailout and a controversial bankruptcy reorganization.
The exercise of the overallotment options brings the total offering size to $23 payday loan online.1 billion, according to GM. Before the overallotments, the auto maker had raised just more than $20 billion.
Just counting the common-stock portion, GM’s offering goes down as the second largest in U.S. history, behind Visa Inc.’s 2008 IPO, which raised $19.65 billion.
Including proceeds from the convertible offering, the deal set a new record, surpassing a $22.1 billion IPO earlier this year by Agricultural Bank of China .
Morgan Stanley , J.P. Morgan Chase & Co. , Bank of America Merrill Lynch and Citigroup Inc. were the main underwriters of the offerings.
Several other investment banks, including Barclays Capital , Credit Suisse Group , Deutsche Bank AG and Goldman Sachs Group Inc. were underwriters on the IPO as well.
