General Motors Renaissance Center, Detroit, Michigan
General Motors' initial public offering is just a few weeks away, and the company is expected to make some announcements today that should be of interest to investors, analysts, and car fans. Here are a few details, some of which we already knew, and some of which have leaked out in advance of GM's official statements:
• Trading of GM stock will officially begin November 18 on the New York and Toronto stock exchanges.
• The company is expected to offer 365,000,000 shares during its IPO.
• The price of those shares is conservatively estimated to ring in between $26 and $29, though some analysts expect the actual price to be closer to $40.
• At $29, the sale would generate over $10.5 billion in revenue for GM.
• The final stock price will be set on November 17.
• The U.S. government holds a 61% stake in GM, which it took in exchange for $40 billion.
• The U.S. will likely sell at least 263,500,000 shares during the IPO, which accounts for roughly 1/3 of its holdings in the company.
• Sold at $29, that would yield a return of $7.6 billion for the U.S. One-third of the feds' $40 billion investment is $13.3 billion -- a difference of just under $6 billion.
• The U.S. government could make up such losses down the line, when it sells its remaining GM stock.
• GM's stock price -- and attractiveness to investors -- could be boosted by its ability to avoid $45 billion in taxes over the coming decade or two. (That's because of a U.S. law that allows companies to spread losses over 20 years.)
• During the company's IPO roadshow to analysts and investors, GM may drive demand for its stock even higher with talk of the company's Q3 profits, which are said to be significant. Figures should be out next week.
• No word yet on whether GM Chairman Ed Whitacre's foot-in-mouth episode rankled any feathers at the SEC, but at this point, no news is probably good news. (It's important to note that GM stock will likely price slightly higher than the $20 - $25 at which Whitacre hinted. Maybe that's what's keeping the SEC off his back.)
Of course, we're not brokers, economists, or financial advisors so these are just the high points. Stay tuned for more details as they become available.