Here at GM Authority, we like to provide you with the latest developments in (but not limited to) the General Motors IPO saga. Unfortunately, the current set of the reports regarding the offering don’t seem to make any linear sense. According to Bloomberg, our favorite automaker is allegedly in talks with major foreign investment firms from Abu Dhabi, Saudi Arabia, Qatar and Singapore. This news comes in complete contrast to a previous report that the U.S. Treasury’s is considering putting a cap on foreign investors in order to avoid political fallout.
The firms in question are Kingdom Holding Co. out of Saudi Arabia, Qatar Holdings LLC, Abu-Dhabi-based Mubadala Development Co., and Temasek Holdings out of Singapore. By seeking out such clientele, The General (along with the U.S. Treasury) will generate a higher demand for its stock by doing some sort of money-magic most of us car guys don’t fully understand, but acknowledge. On another note, GM has also lowered its expectations on how much money it expects to raise from the initial sale from a lofty $16 billion to a more realistic $8-$10 billion. As a tradeoff, The General expects a higher trading price. Looks like this is yet another case of only time will tell.