Kuwait wealth fund to consider GM IPO if feasible

KUWAIT (BestGrowthStock) – Kuwait Investment Authority, the Gulf Arab country’s sovereign wealth fund, will consider taking part in General Motors’ (GM.UL: ) initial public offering if it is feasible, its managing director said on Saturday.

“Now, the price range has been set. Last week, they announced the price range, which is the valuation range,” Bader al-Saad told reporters.

“We have to review if it is feasible for us. If it is feasible for us we will look into it,” he said on the sidelines of a meeting of Gulf policymakers in Kuwait. “If it is something cheap, we are interested of course.”

Earlier this week, General Motors finalized terms for a stock offering of about $13 billion, which follows restructuring of the former blue-chip company that went bankrupt in 2009.

The automaker plans to sell 365 million common shares at $26 to $29 each, raising about $10 billion at the midpoint. The IPO would value GM at just over $41 billion at the midpoint of the price range in what is expected to be one of the largest-ever IPOs.

GM, the top U.S. automaker by sales, said earlier on Wednesday that it expected third-quarter earnings of $2.1 billion and that it would turn a “solid” profit for the full 2010 year.

(Reporting by Eman Goma; Writing by Martin Dokoupil; Editing by Susan Fenton)

Kuwait wealth fund to consider GM IPO if feasible