Tag Archive | "initial public offering"

TrueCar Announces Pricing of Initial Public Offering

SANTA MONICA, Calif. — Last week, TrueCar announced the pricing of its initial public offering of 7,775,000 shares of its common stock at a price to the public of $9 per share.

The shares began trading on the NASDAQ Global Select Market on May 16 under the symbol “TRUE.” In addition, TrueCar granted the underwriters a 30-day option to purchase up to 1,166,250 additional shares of common stock from TrueCar at the initial public offering price. The offering is expected to close on May 21, 2014, subject to customary closing conditions.

Goldman, Sachs & Co. and J.P. Morgan Securities LLC are acting as joint book-running managers for the offering. RBC Capital Markets LLC is also acting as a book-running manager. Cowen and Company LLC and JMP Securities LLC are acting as co-managers.

A registration statement relating to these securities has been filed with, and declared effective by, the Securities and Exchange Commission.

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GM Calls a Financial Summit in Preparation for IPO

General Motors Co. has invited financial analysts, potential investors and other members of the financial community to Warren next week to review its business performance ahead of an initial public stock offering expected late this year, reported The Detroit News.

The June 29 meeting at GM’s Technical Center will focus on the automaker’s progress since emerging from bankruptcy last summer.

GM will provide updates from each of its four global regions. Vice Chairman and Chief Financial Officer Chris Liddell will host the meeting, and Vice Chairman Steve Girsky will talk about the new GM.

Tom Stephens, vice chairman of global product operations, will review fuel economy and technology improvements.

The meeting comes as GM prepares to file, as early as next week, a detailed statement outlining its proposed initial public offering that will reduce the U.S. government’s 60.8 percent stake in the company. The sale could take place before the November election.

“It’s been a while since we’ve engaged with this community,” GM spokeswoman Noreen Pratscher said.

An IPO will allow GM to again be a publicly traded company, the first step toward the government selling its ownership stake.

Bloomberg News, citing unidentified sources, reported Wednesday that GM. is preparing to sell 20 percent of the Treasury’s 304 million shares, which would reduce its stake to below 50 percent.

Final decisions on which owners will sell how many shares haven’t been made and may change, Bloomberg reported.

Some Wall Street analysts predict the government will sell a third of its stake — roughly 100 million of its 500 million GM shares — in an initial sale.

That first sale could raise between $10 billion and $15 billion or more, which would put it among the three largest IPOs in history.

One Treasury official said a GM stock sale could raise more than $20 billion and become the largest IPO in history.

Members of the financial community also will test drive GM vehicles during the meeting.

Also Wednesday, GM said it is in talks with financial institutions to provide more loans and leases for customers with bad credit — a move that could boost sales and market share.

The discussions mean GM is less likely to try buying back part of its former GMAC financing unit, now called Ally Financial Inc., or create its own finance division.

“We are developing relationships with other financial sources on a selective basis for specialized financing needs, such as leasing and sub-prime financing,” GM spokesman Tom Wilkinson said.

Next week’s get-together in Warren could be timed to coincide with GM filing the IPO registration statement, speculated auto analyst Joe Phillippi of AutoTrends Consulting in Short Hills, N.J.

“It’s about spin,” Phillippi said. “GM wants to get its story out. This is the first go-’round with the road show.”

The registration statement also will announce that Morgan Stanley and JPMorgan Chase & Co. will be lead underwriters for the sale of part of the government’s stake.

The registration statement will include detailed financial information about GM.

It also will likely indicate how much stock the government is willing to sell, and how many shares can be sold to the underwriters, which can profit by selling them.

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Electric-Car Maker Tesla to Set Up IPO

Tesla Motors Inc., the maker of electric sports cars that hasn’t posted a profit since its founding in 2003, will seek to sell 11.1 million shares at $14 to $16 each in its initial public offering, The Detroit News reported.

The producer of the $109,000 electric Roadster will use the proceeds from the $178 million IPO to pay for factories and fund possible acquisitions, a Securities and Exchange Commission filing showed.

Existing stockholders, including Chief Executive Officer Elon Musk, will sell 1.1 million of the 11.1 million shares; Toyota Motor Corp. will buy $50 million of stock in a private placement, Palo Alto, California-based Tesla said.

The automaker is pushing forward with its sale even after the European debt crisis spurred at least 34 companies to postpone or withdraw IPOs since the start of May.

Tesla, which has sold about 1,000 Roadsters while losing $290 million, is using the share sale and a $465 million loan from the government to help produce its second electric car, the Model S sedan.

Tesla hired New York-based Goldman Sachs Group Inc., Morgan Stanley and JPMorgan Chase & Co., along with Deutsche Bank AG in Frankfurt, to lead the sale. The company originally filed with the SEC in January to raise as much as $100 million.

Musk, who founded PayPal Inc., the online payment company now owned by eBay Inc., spent more than $70 million of his own money on Tesla before May 2009, when Daimler AG of Stuttgart, Germany, invested $50 million.

The company is backed by investors including Google Inc.’s co-founders Larry Page and Sergey Brin; the government of Abu Dhabi; and Daimler, the world’s second-biggest maker of luxury vehicles.

General Motors Co. also has said that it may sell shares to the public as early as this year.

Cambridge, Mass.-based Zipcar Inc., the car-sharing company that rents vehicles by the hour, filed this month to raise as much as $75 million in an IPO.

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