Kuwait wealth fund not buying GM shares

Kuwait wealth fund not buying GM shares

Kuwait Investment Authority, the Gulf Arab country's sovereign wealth fund, will not be taking part in General Motors' initial public offering

November 21, 2010 4:01 by Reuters

Kuwait Investment Authority, the Gulf Arab country’s sovereign wealth fund, will not be taking part in General Motors’ initial public offering, a source said on Sunday.

Earlier this month, KIA’s managing director, Bader al-Saad, said the fund was considering taking in GM’s initial public offering if it is feasible, but a person familiar with the matter at KIA said they had decided not to invest due to the increase in the share price.

GM raised $20.1 billion last week, placing its shares at the top of a proposed range due to massive investor demand.

The IPO values GM at about $63 billion. Including an option that would allow underwriters to sell more shares, GM looks set to raise $23.1 billion, eclipsing the record $22.1 billion raised by Agricultural Bank of China in July.

(Reporting by Diana Elias; Editing by Reed Stevenson)