Reflecting renewed confidence, GM ups IPO by more than 30%

General Motors Co. is boosting the size of its common stock offering by more than 30 percent, a source familiar with the matter said Tuesday, potentially making its landmark IPO the largest U.S. offering ever.

The expanded initial public offering, responding to surging demand, could raise as much as $22.7 billion, the source said, noting that investors have put in $70 billion worth of orders for common shares.

The increasing size of the IPO reflects renewed investor confidence in the world's No. 2 automaker less than a year and a half after dwindling cash and falling sales pushed it into a bankruptcy funded by the Obama administration.

GM now plans to sell 478 million common shares for $32 to $33 each, the source said.

GM earlier Tuesday increased the size of its preferred stock offering by $1 billion to $4 billion in a move that will strengthen its balance sheet by paying down pension debt - one of the concerns investors had cited heading into the IPO.

The largest previous U.S. IPO is Visa Inc.'s $19.7 billion stock sale in 2008.

The stock is set to begin trading Wednesday on the New York and Toronto stock exchanges.

- Reuters