Up to 5% of General Motors Co.’s common stock will be sold in its initial public offering for its employees, retirees and dealers, according to a filing that GM submitted to the US Securities and Exchange Commission.
This disclosure is actually the first details that GM has provided, indicating how its shares will be sold in the IPO expected next month.
About 600,000 workers, retirees and dealers can take advantage of the directed stock purchase program, which Morgan Stanley Smith Barney is administering.
GM’s employees have until October 22 to register to purchase shares in the IPO at a minimum commitment of over $1,000 per investor but the maximum has yet to be determined. GM was restructured in a 2009 bankruptcy with $50 billion in US government funding.
The IPO is GM’s initial step to reduce the US Treasury's nearly 61% stake in the carmaker. In a separate matter, the US Labor Department said it has approved a plan developed as part of bankruptcy for funding a trust fund affiliated with the UAW that is paying for retiree health care.
GM had sought this agency’s approval in order for GM to proceed with its IPO since the UAW's trust fund is another major shareholder, aside from the US government and the governments of Canada and Ontario. [via autonews - sub. required]