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[marayatano]

UPDATE 4-GM boosts IPO pricing, offers more preferred shrs

Tue Nov 16, 2010 12:40pm EST

* GM confirms raising IPO price range to $32 to $33/share

* GM IPO now to raise about $12 bln in common stock

* Selling $4 bln preferred stock, $1 bln more than planned

* IPO to give GM $63 bln market value, near US break-even

* GM weighing a bigger offering amid high demand -source (Adds background from source on IPO size, reduced dividends on preferred shares, other details)

By Soyoung Kim and David Bailey

NEW YORK/DETROIT, Nov 16 (Reuters) - General Motors has increased the preferred stock on offer by a third and raised the price for common stock in its landmark IPO, bringing the U.S. government closer to break-even on its controversial bailout.

GM [GM.UL] said on Tuesday it now plans to sell 365 million common shares for $32 to $33 each, raising about $12 billion. The mid-point of the new range represents an 18 percent increase from the previous share range of $26 to $29.

The automaker also increased the size of its preferred stock offering by $1 billion to $4 billion in a move that will strengthen its balance sheet by paying down pension debt -- one of the concerns potential investors had cited heading into the initial public offering.

Including an overallotment provision for both common and preferred shares, the GM deal is now set to raise almost $18.5 billion if it prices at the high end of the new price range.

With GM's advisers expecting excess investor demand even at the higher price range, shareholders led by the U.S. Treasury are weighing whether to expand the number of common shares on offer, a person familiar with the matter said on Tuesday.

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TAKE A LOOK on GM's IPO: [ID:nN11173673]

Former head of US Auto Task force speaks to Reuters

Insider on GM's competitive position:

link.reuters.com/gur55q

http://www.reuters.com/article/idUSN1612529320101116