The market for initial public offerings on U.S. exchanges improved significantly in 2010. There were 150 U.S. IPOs that raised a total of $34.5 billion in the first 11 months of the year. That compares favorably to 64 in 2009 and 51 in 2008. Last year’s two largest IPOs came in the fall: the $23.1 billion IPO of General Motors Company, and American International Group, Inc.’s $20.5 billion spin-out of two-thirds of AIA Group, Limited.
Below, we list the law firms that worked on the GM and AIA deals as well as three other high-profile IPOs of 2010: KKR & Co. L.P., Tesla Motors Inc., and Oasis Petroleum Inc. All underwriters are listed in the order and with the name given in the prospectus and are based in New York unless otherwise noted.—David Marcus
A year and a half after filing for Chapter 11, General Motors Company is back in the public markets. The automaker raised $23.1 billion in November in the largest initial public offering ever by selling $18.5 billion in common stock and $4.6 billion in preferred stock. The IPO reduces the U.S. government’s stake in GM from 61 percent to 26 percent and leaves the company with a market capitalization of about $50 billion. GM stock held steady at around $34 per share in the weeks after its debut.
Jenner & Block: Brian Boch, Joseph Gromacki, and William Tolbert, Jr.
Davis Polk & Wardwell: Sarah Beshar, John Brandow, and Richard Drucker.
The failed $35.5 billion sale of AIA Group, Limited, to Prudential plc last year didn’t turn out as badly as it might have for American International Group, Inc., which owns AIA [Big Deals, May 2010]. After opposition from Pru shareholders killed the deal, AIG listed its Asian life insurance subsidiary on the Hong Kong Stock Exchange on October 29, in one of the largest IPOs ever and one of the most successful in 2010.
AIG raised $20.5 billion by selling two-thirds of AIA to public shareholders. Much of that money will go to pay down loans the insurer took from the U.S. government in the financial crisis of 2008. The government owned 79 percent of the company before the IPO.
Debevoise & Plimpton: Thomas Britt III, E. Drew Dutton, and John Vasily.
Freshfields Bruckhaus Deringer: Teresa Ko and Kay-Ian Ng .
Davis Polk & Wardwell: Ethan James, John Knight, and Mark Lehmkuhler.
Herbert Smith: Andrew Tortoishell.
Sullivan & Cromwell: William Chua.
Linklaters: Christopher Kelly and Teresa Ma.
Private equity firm KKR & Co. L.P. issued its shares on the New York Stock Exchange on July 15, three years after the private equity firm announced plans to go public. The collapse of the buyout market in 2007 foiled those plans, and KKR effected an issuance on Euronext by merging with affiliate KKR Private Equity Investors LP in a deal completed toward the end of 2009 [Big Deals, October 2008]. Holders of the Euronext shares swapped them for the U.S.–listed stock in July.
Simpson Thacher & Bartlett: Joseph Kaufman, and Steve Todrys.
Tesla Motors Inc. raised $260 million in a June 28 IPO. The electric carmaker will use most of the money to develop its Model S sedan, a seven-seat vehicle that is slated for a 2012 release.
Wilson Sonsini Goodrich & Rosati: Mark Baudler, David Segre, and Larry Sonsini.
Simpson Thacher & Bartlett: Kevin Kennedy.
Oasis Petroleum Inc.
Oil and gas exploration company Oasis Petroleum Inc. raised $676 million in its June 16 IPO.
Vinson & Elkins: T. Mark Kelly and David Oelman.
Andrews Kurth: David Buck and G. Michael O’Leary