GM Underwriters Set to Raise IPO Price to $32-$33 a Share
Underwriters of GM’s hotly anticipated initial public offering are raising the deal’s price to $32 to $33 per share Monday night, someone familiar with the matter told CNBC.
GM, which is expected to sell at least 365 million shares to the public in a deal set to price Wednesday night, originally said it would likely price those shares at between $26 and $29 apiece.
But after ten days of investor presentations and a growing sense of optimism about the offering, underwriters are opting to raise the price range high above its original level.
Calls to gauge investor interest at the new price are expected to go out imminently, the person familiar with the matter said.
With just two days to go before the GM offerings' final pricing, the number of shares expected to be sold haven’t budged above the original amount, this person added. But a mandatory convertible preferred-stock offering being launched in conjunction with the IPO will rise in size from $3 billion to $4 billion, said the person.
GM is going public after a $50 billion government bailout last year that left the US Treasury with a majority stake in the auto maker. The IPO will help pay back the government and reduce its stake.
Watch special coverage of the GM initial public offering, including what it means for investors, taxpayers, consumers and workers, Wednesday, November 17 at 10:30am ET on "Squawk on the Street."