Saudi tycoon Alwaleed buys one percent stake in GM

Saudi tycoon prince Alwaleed bin Talal al-Saud, has invested $500 million in General Motors' initial public offering.

Alwaleed and Kingdom took a one percent stake in GM when the automaker returned to the public share markets with a 20 billion dollar-plus initial public offering on November 18, Kingdom Holding Company said in a statement.

The decision of Kingdom Holding Company and Prince Alwaleed to invest in GM was based on the global strength of General Motors brand, the relatively attractive offering price, and the company's growth prospects in Brazil and China, it said.

The statement did not say how many shares were bought, or how KHCs arrived at the 1 percent figure.

GM last week launched an initial public offering worth $15.8 billion, a move that signaled its resurrection following its fall into bankruptcy protection and the subsequent $50 billion bailout by U.S. taxpayers.

The carmaker had hoped to tap rich Mideast sovereign wealth fund and wealthy Arab investors. But Kingdom Holding Company is the only Arab investor to disclose an investment in the company.