Kuwait wealth fund to consider GM IPO if feasible

Automaker may sell 365m common shares, raising about $10 bn at midpoint
Kuwait wealth fund to consider GM IPO if feasible
The IPO would value GM at over $41 billion, what is expected to be one of the largest ever IPOs (Getty Images)
By Reuters
Sat 06 Nov 2010 06:53 PM

Kuwait Investment Authority, the Gulf Arab country's sovereign wealth fund, will consider taking part in General Motors' initial public offering if it is feasible, its managing director said on Saturday.

Bader al Saad told reporters: "Now, the price range has been set. Last week, they announced the price range, which is the valuation range."

On the sidelines of a meeting of Gulf policymakers in Kuwait, he said: "We have to review if it is feasible for us. If it is feasible for us we will look into it. If it is something cheap, we are interested of course."

Earlier this week, General Motors finalized terms for a stock offering of about $13 billion, which follows restructuring of the former blue chip company that went bankrupt in 2009.

The automaker plans to sell 365 million common shares at $26 to $29 each, raising about $10 billion at the midpoint.

The IPO would value GM at just over $41 billion at the midpoint of the price range in what is expected to be one of the largest ever IPOs.

GM, the top US automaker by sales, said earlier on Wednesday that it expected third quarter earnings of $2.1 billion and that it would turn a "solid" profit for the full 2010 year. (Reuters)

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