GM to Raise Price Range for IPO?

Strong investor demand for General Motors stock may prompt the automaker to raise the target price range for Thursday's initial public offering, a person briefed on the matter said Monday.

GM earlier this month said the common stock would sell for $26 to $29 per share and preferred shares would go for $50 each. The person said high demand is causing the automaker and its investment advisers to rethink the pricing.

No decision has been made on raising the price range, said the person, who asked not to be identified because they are not authorized to speak publicly on the issue.

GM spokesman Selim Bingol would not comment on a possible change in pricing. GM would likely announce the increased pricing in a filing with the U.S. Securities and Exchange Commission as it did with the first price range on Nov. 3.

The Wall Street Journal reported Monday that the price range could rise to $31 to $33 for the common shares, citing a person familiar with the matter.

GM's owners, including the U.S. government, are selling 365 million common shares and the company plans to sell 60 million shares of preferred stock.

Banks underwriting the sale also are likely to exercise an option to sell 15 percent more shares because of the high demand, the person said.

A different person briefed on investor demand said last week that orders for the common stock were four times the number of shares, while preferred stock orders were double the number of shares.