After much anticipation, General Motors finally revealed details of its public offering of stock, which is expected later this month.
The automaker plans to issue 365 million shares of common stock at a price of $26 to $29 a share, GM said in a statement Wednesday. It will also issue 60 million shares of preferred stock at a price of $50 a share. Combined, the company is seeking to raise about $13 billion, higher than recent estimates of $8 billion to $10 billion.
Underwriters have the option to purchase up to an additional 54.75 million shares of common stock and up to 9 million shares in preferred stock to cover any over-allotments, GM said.
The IPO will effectively reduce the federal government's stake in the automaker. The U.S. Treasury currently owns about 61% of GM. The Detroit-based auto giant has said for months that it wants to reduce Treasury's stake, saying government ownership hinders both its brand image and sales.
Separately, GM said it expects to earn $1.9 billion to $2.1 billion in the third quarter on revenue of about $34 billion, when it releases its quarterly earnings statement next week.
For the first nine months of the year, GM expects net income of $4 billion to $4.2 billion.