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The following article was published in our article directory on November 16, 2010.
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Article Category: Business
Author Name: xia zihui
Wall Street, after an absence of one year after the return of General Motors formally announced. November 18, GM will also visit the New York Stock Exchange and the Toronto Stock Exchange initial public offering is expected (IPO) financing capacity is 100 million, but news that the IPO received subscription now common One has more than 60 billion U.S. dollars the total, indicating investors are former king of the automotive world is still full of confidence.
Or purchase 1% of the shares of SAIC
General Motors submitted the listing documents show the company sold 365 million of this total shares, representing the total share capital after the release of 24% of the price range of 26-29 U.S. dollars a share, the total size of the financing is expected to reach 100 billion U.S. dollars, is expected to be During the year, the largest U.S. IPO. In addition GM also sold $ 3,000,000,000 of convertible preferred stock.
General Motors has received 60 billion U.S. dollars IPO subscription list, six times the size of its proposed financing, showing investors a year ago, this house also troubled car giant spirits high. Analysts generally believe General Motors in the final IPO price range will be priced at the upper end of or exceeds the price range. If the price of 29 dollars per share, issued, General Motors will reach 43.5 billion market capitalization, is expected to compete with Ford.
In another development, the Shanghai Automotive has shares with General Motors regarding the final round of talks, will spend 500 million U.S. dollars may subscribe for the latter about 1% of the shares. From the Middle East and Asian countries have also committed to sovereign wealth funds purchased a total of $ 2,000,000,000 for General Motors shares, which may include sovereign wealth fund Government of Singapore Investment Corporation (GIC), Temasek, Kuwait Investment Authority, Qatar Investment Council and the Abu Dhabi Investment Authority and so on. In the IPO, the retail investors to absorb the total amount of shares accounting for about two percent or so.
Fifth Third Asset Management fixed-income investment manager Mike Patrick said, "General Motors has a new look, so investors in high spirits." And more analysts believe that the GM hot IPO subscribed, indicating that including the Chrysler bankruptcy reorganization, including the automotive industry and other companies will also be a very good IPO prospects.
"State" hard hat Abstract
June 2009, debt of General Motors filed for bankruptcy protection, stock delisted delisting. Prior to the 2005 to 2008, General Motors accumulated losses reached 82 billion U.S. dollars, almost five years from 2000 to 2004 in the sum of 10 times earnings. To help this former king of the automotive world, the U.S. Treasury invested $ 49,500,000,000 before and after assistance payments, and get 61% stake in GM.
For GM, the "state" label has never been good to wear. In the absence of capital markets announced 17 months after return, to some extent also to quickly get rid of "state-owned enterprises" name. It is reported that General Motors after the IPO, the U.S. Treasury's stake in the company will be reduced to about 40%, but complete withdrawal is still very difficult. Some analysts said that the Ministry of Finance needs to be an average price of $ 43.67 per share for all common shares sold in order to make this huge investment is not a loss, but the price higher than the price of General Motors issued nearly 50%. In other words, American taxpayers in order to break even, the market value of General Motors at least 700 billion U.S. dollars.
In addition to the U.S. Treasury Department, the United Auto Gonghui retirement health care trust fund and the Government of Canada will also be sold in the IPO, $ 2,000,000,000, respectively, and $ 1,000,000,000, ranging from General Motors stock. But in any case, IPO is completed, the U.S. Treasury Department are still the largest shareholder of General Motors, when they can get rid of "government vehicles" label is still unknown.
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