F&I Management & Training

The US car giant General Motors (GM) says its offer of shares to the public could raise $18bn (£11.3bn), $5bn more than first hoped.

Investor interest in the sale means demand has rocketed and increased the price the company can charge.

The company is currently more than 60% owned by the US government which is keen to return it to the market.

It plans to sell 365 million common shares for up to 18% more than first estimated at a price of $33 each.

It will also now offer $4bn in preferred stock - four times the original value planned.

Preferred stock carries different rights and will help to pay off the company's pension debt - one of the concerns of potential investors in the share sale.

According to the Reuters news agency, a price for the common stock of $33 per share would give GM a market value of about $63bn - close to the $66bn value that GM needs in order for US taxpayers to break even, based on the US Treasury's remaining common stock holding and a share price projection by the Treasury's special inspector general.