DETROIT (Bloomberg) -- Delphi Automotive, the reorganized former parts unit of General Motors Co., plans to set terms for its initial public offering by tomorrow and begin pitching to investors next week, two people familiar with the sale said.
The supplier will seek $550 million in the IPO, said the people, who asked not to be identified because the plans are private.
Shares will probably be priced on Nov. 16 and begin trading the next day, one of the people said. The company had planned to raise more than $1 billion, a person with knowledge of the offering said in May.
Delphi is moving ahead with its IPO amid the turbulence in the global markets and automobile industry that caused billionaire Wilbur Ross in September to delay the offering of his International Automotive Components Group until at least January.
IPOs totaling $8.9 billion were canceled or postponed in the third quarter and $34 billion for the first nine months.
"The pool of cash is dwindling, so you might as well strike now while the iron is warm," said Jim Hall, a principal of 2953 Analytics Inc., a consulting firm in suburban Detroit.
Delphi, once the largest U.S. auto-parts maker, exited bankruptcy restructuring in October 2009. Delphi has since become more profitable, reduced its dependence on its former parent and expanded in fast-growing emerging markets.