* General Motors is expected to not update the prospectus - sources
* Shanghai Automotive expected to buy at least 1% GM stake - sources
* Shanghai Automotive is the only one expected to buy GM shares in the IPO carmakers - sources
Reuters, New York, November 15 - --- Two sources familiar with the matter said on Monday, General Motors GM.UL initial public offering (IPO) price will be set at least 30 dollars per share, higher than initially proposed by the previous interval.
Price increase reflects this restructuring for investors after the American car manufacturers need to buy, and the expected equity sales in the first round of the U.S. Treasury to reduce the estimated loss.
GM expected IPO price on Wednesday and Thursday will be in the New York Stock Exchange and Toronto Stock Exchange. 30 U.S. dollars per share calculation, GM will be raised from the common stock of approximately $ 10,950,000,000.
To 19 million shares diluted share calculation, the price of 30 dollars per share means the market value of General Motors, will reach 57 billion U.S. dollars. General Motors, the market value should reach about 700 billion U.S. dollars, to let the U.S. taxpayers 50 billion U.S. dollars of relief break even.
Obama automotive industry issues before the team leader Steve Rattner told Reuters in Detroit, GM's IPO price is almost certain to be a breakthrough announcement earlier 26-29 dollars.
"If the next 48 hours, no significant change in the world, is certainly higher than the announced price range." Rattner said.
Rattner said the success of GM's initial public offering, to be supplemented by market investors to regain confidence in the automotive industry, which will help to return the second half of 2011, Chrysler stock.
GM application to issue about 100 million of common shares and 30 billion dollars in preferred stock. [ID: nCN1431827]
Experienced a restructuring of government support after more than a year after General Motors began to return to the stock market. Restructuring makes the U.S. Treasury holds 61% stake in GM, becoming its largest shareholder.
Restructuring of government support to make a substantial reduction in the cost of generic and may have higher profit margins.
GM's IPO is expected to become second only to Visa (VN: Quote) in the case of the second largest U.S. IPO, but also one of the world's largest IPO case. [ID: nCN1431827]
It is said, GM is unlikely to revise their instructions to improve its IPO price range.
One source said, Shanghai Automotive (600104.SS: Quote) to subscribe for at least about 1% of GM shares. [ID: nCH0084888]
Other car manufacturers have also expressed a willingness to subscribe for the interest. According to sources, the Shanghai Automotive will likely be the only car manufacturer of shares. (End)
- Compile Zhang Mingjun / Lan Xiu-juan; revision Daisu Ping
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