GM Offering More Week leads to the U.S. IPOs Since Lehman

General Motors Co. 's initial public offering and the sale of four private equity-backed companies are taking the biggest week of IPOs in the U.S. since before the collapse of Lehman Brothers Holdings Inc.

Ten companies plan to raise a total of $ 12.5 billion this week, the most since San Francisco, Visa Inc. 's 19.7 billion U.S. dollars sales in March 2008, the largest IPO in U.S. history,  GM, 61 percent owned by the U.S. Treasury can sell $ 10,600,000,000 shares Nov. 17 to help pay his ransom. Carlyle Group and Golden Gate Capital are among private equity firms taking public companies in the deals that could raise $ 1.5 million, offers brochures, he said.

While U.S. taxpayers will have a 34 percent loss on sale of treasury shares of GM at the offer price up to $ 29 per share, Carlyle and Golden Gate Capital can more than double the performance of their investments in Booz Allen Hamilton Holding Corp. and Aeroflex Holding Corp. The sales come after the Standard & Poor's 500 Index, the benchmark for the U.S. capital, rose to a maximum of two years this month.

"The week is large enough to explicitly define the temperature of the market for IPOs," said Lawrence Creatura, a Rochester, New York-based fund manager at Federated Investors Inc., which oversees 340 billion U.S. dollars. "It seems a fertile time to address the equity issue.'s Appetite for equity and the risk has increased."

Sale of Shares of GM

GM will sell 365 million shares, or a 24 percent to $ 26 to $ 29 each, according to a filing with the Securities and Exchange Commission. The Detroit-based company also is offering $ 3 billion of preferred stock to be converted into ordinary shares.

The automaker is likely to sell the stock at the top of the price range of the initial public offering or above, two people familiar with the deal, said last week. Steven Rattner, former head of the government force U.S. Automotive task, said today that it expects the offer at a price above the expected range.

"There's definitely a higher level of confidence in the ability of automakers to perform," said Rattner told reporters at an event of the Automotive Press Association in Detroit.

GM insurers is likely to have the over-allotment option to sell 54.8 million more shares, people familiar with the IPO, said last week. That would help regain U.S. Treasury more than 49.5 billion U.S. dollars of public investment in the company.

The car manufacturer may re-submit its registration statement with the SEC from today to boost the price range of the offer, according to CNBC, citing unidentified sources.

Results earnings

The initial offer, which would be the third largest in U.S. history, comes 16 months after GM out of bankruptcy. The company reported third quarter net profit of 2.16 billion U.S. dollars last week, bringing the carmaker's earnings this year to 4.77 billion U.S. dollars. That topped the 4.46 billion U.S. dollars profit for Toyota City, Japan-based Toyota Motor Corp.

The Treasury does not sell GM shares for an average of $ 43.67 per share, or 51 percent above the upper end of the range it offers.

A $ 29 per share, GM would have a market capitalization of $ 43.5 million. That the value of GM's 6.84 times revenue this year, based on net income in the first nine months of 2010. Dearborn, Michigan, Ford Motor Co. in trades 7.9 times analysts' estimates for 2010 earnings, the data show.

Relative Value

GM, which lost 82 billion U.S. dollars from 2005 to 2008, was valued at an average of 10.3 times earnings from 2000 to 2004, monthly data compiled by us. Ford traded at an average of 13 times earnings in the same period.

General Motors Corp. sought bankruptcy protection under Chapter 11 on June 1, 2009, after the failure of New York, Lehman Brothers in September 2008 and froze credit markets has helped fuel the worst recession since the Great Depression.

"The government wants to close the deal out," said Darren material, managing director based in Chicago in iPox Capital Management LLC, which oversees $ 3 billion. "They do not mean much, because they want to get a lot of taxpayers, but not selling the whole thing, so it's okay to go up later, because taxpayers will benefit."

The first U.S. offering week's Booz Allen will be tomorrow. The consulting firm acquired by Carlyle, based in Washington in 2008 is the sale of 14,000,000 Class A shares of $ 17 to $ 19. The midpoint is 233 percent higher than the average price of $ 5.40 per share paid by the current owners, a filing with the SEC, said.

IPOs of private equity

Carlyle, the world of private equity firm second-largest, has no plans to sell shares and retain control of a 71 percent stake in McLean, Virginia-based company.

Aeroflex, owned by San Francisco Golden Gate Capital, Veritas Capital of New York and a buyout fund by Goldman Sachs Group Inc. in New York, will offer 17.25 million shares at $ 13.50 to $ 15.50 on 18 November submission to the SEC, said.

The maker of semiconductor test equipment has not posted a profit since it was privatized in August 2007. IPO buyers are asked to spend 141 percent more than the average price paid to existing investors for their participation.

LPL Investment Holdings Inc., the brokerage firm based in Boston and investment advisory firm owned by TPG Capital and Hellman & Friedman LLC, offered 15.6 million shares at $ 27 to $ 30 each on 17 November. At the midpoint, the IPO would LPL a market capitalization of $ 3,050,000,000. Fort Worth, Texas-based TPG and Hellman & Friedman of San Francisco bought 60 percent of the LPL in 2005.

"Open now '

Harrah's Entertainment Inc., the world's largest casino company, will sell 31.3 million shares for $ 15 to $ 17 each on Nov. 18, his presentation, he said. The company, based in Las Vegas is changing its name to Caesars Entertainment Corp. before the IPO.

New York, Leon Black of Apollo Global Management LLC and TPG, David Bonderman Harrah's was deprived of $ 30,700,000,000, including the cost of debt and transaction in January 2008.

While 21 companies completed IPOs in the U.S. in October, the highest since December 2007, and 10 have sold shares in November, offers this week come after the S & P 500 posted the largest weekly decline in three months.

"It's a calendar very, very thorough," said Uri Landesman, president of New York, hedge funds Platinum Partners LLP. "Both the insurers and businesses are realizing that this window is now open for public tenders may be closed at any time."