Chrysler mulls raising $1.5-2B in IPO

|By:, SA News Editor

Chrysler is reportedly considering setting the price range of its IPO so that it would raise $1.5-2B, which would give the auto maker a market cap of $9-12B.

Such a range would value the 41.5% stake held by the United Auto Workers' retiree healthcare trust at $3.7-5B.

Chrysler expects to fix the range this week and carry out the listing by mid-December in order to avoid the holiday slowdown in the IPO market.

Alternatively, the external setting of a valuation for the trust's stake could facilitate a deal for Fiat (FIATY) - Chrysler's majority owner - to buy the UAW holding and stop the IPO. Fiat would then be able to merge its operations with Chrysler. (Previously)