GM IPO grows to $23B with overallotment exercise

[Omaha Steve]

Source: AP

By DAVID PITT

DES MOINES, Iowa (AP) - General Motors Co. (GM) said the underwriters of its recent initial public offering have exercised their overallotment of an additional 71.7 million shares of common stock, bringing the total size of the deal to $23.1 billion.

The additional shares were worth $2.37 billion. The underwriters also exercised the right to purchase an additional 13 million shares of mandatory convertible junior preferred stock from the Detroit automaker, for a total of $650 million.

The deal's underwriters included investment banks Morgan Stanley (MS), J.P. Morgan Chase & Co. (JPM), Bank of America Merrill Lynch and Citigroup.

The sale of additional shares allowed the government to sell an another 54 million shares of stock it owned, getting back another $1.8 billion. In the initial offering, the government received $11.7 billion from the sale of 358.5 million shares. The government put $49.5 billion into GM as part of its bailout of the automaker.

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