GM raises IPO target price

By Charles Riley, staff reporter


NEW YORK (CNNMoney.com) -- For investors eager to buy GM shares, the target price just went up.

General Motors raised the estimated price for its initial public offering of 365 million shares Tuesday to $32 to $33 from its previous estimate of between $26 and $29 per share.

The automaker also announced an increase in the number of converted preferred shares it plans to sell, boosting the amount it expects to raise to $4 billion from $3 billion.

As a result, the total size of the offering is now expected to be close to $16 billion. GM had previously announced plans to sell about $13 billion in common and preferred shares as part of its IPO, one of the largest in U.S. history.

After the taxpayer funded bailout of GM, the Treasury Department is among the key stakeholders in the company. Treasury has indicated it will hold onto most of its stake for an undetermined time to avoid flooding the market with GM shares and driving down the price.  To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,113.54 61.81 0.36%
Nasdaq 4,456.02 31.32 0.71%
S&P 500 1,983.53 9.90 0.50%
Treasuries 2.47 -0.01 -0.32%
Data as of 11:04pm ET
Company Price Change % Change
Bank of America Corp... 15.52 0.00 0.00%
Apple Inc 94.72 0.78 0.83%
Microsoft Corp 44.83 -0.00 -0.01%
Intel Corp 34.79 0.73 2.14%
Facebook Inc 69.27 -0.13 -0.19%
Data as of 4:03pm ET

Sections

Passion fruit, Mexican cinnamon and Ecuadorian cocoa. From coast to coast, entrepreneurs are brewing craft beers that incorporate Latin flavors. More

One recently retired airline worker on Obamacare said his tax credit for 2014 will return him $3,600 for the year, or 23% of his annual income. He's watching the dueling court rulings closely. More

Ladar Levison, the guy behind Lavabit, is launching Dark Mail to encrypt emails so the NSA doesn't even know who's talking. More

Passion fruit, Mexican cinnamon and Ecuadorian cocoa. From coast to coast, entrepreneurs are brewing craft beers that incorporate Latin flavors. More

Court documents show big support from Detroit employees and retirees for a turnaround plan that should help the city emerge quickly from bankruptcy. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.