General Motors preparing for an initial public offering (IPO)

Article by Christian A., on August 26, 2010

Sources indicate that General Motors Co. is preparing for an initial public offering that will end with the US as a minority owner. The sources say that GM aims to sell 20% of the government's 304 million shares. This will lower the Treasury Department's stake from 61% to less than 50%. However, the final decisions on which owners will sell how many shares haven't been made and may still change.

It's likely that a registration statement will be filed in August, as it aims for a November stock sale. The sale, which will likely raise $10 billion to $15 billion, will depend on GM's performance, the strength of the economy and the health of the IPO market. According to these sources, a filing in August indicates that GM will have the IPO prepared near the time of the Nov. 2 congressional elections.

Joe Phillippi, president of AutoTrends Consulting, said that if sufficient Treasury shares are sold, President Barack Obama would be able to help Democrats running for office by asserting that his administration's restructuring of GM is paying off.

He thinks that with a successful offering, the government will be able to boast that it has taken GM through bankruptcy, has turned it over to independent management and is now taking it public.

He claims that the government will use this in the campaign. One of the sources said that GM may also issue new shares to raise cash and sell shares owned by Canada and a union-led retiree health-care trust. [via autonews - sub. required]

If you liked the article, share on:

Topics: gm, ipo, united states

Comments

Recommended

It has been nearly eight years since Toyota entered a new era of sports cars when it officially unveiled the production version of the Toyota 86 – also known as...
by - February 27, 2019
The new Audi TT RS – yes, the top version of the German carmaker’s facelifted TT model series – is now officially here. If you could remember, the range-topping TT...
by - February 18, 2019
Nearly half a year ago when McLaren Automotive unveiled the McLaren 600LT Coupe, the British carmaker is now introducing a version that lets its passengers enjoy the thrill of an...
by - January 25, 2019
German carmaker Volkswagen is now making the latest evolution of the new Volkswagen Golf GTI -- the new Golf GTI TCR. First unveiled as a concept at the annual GTI...
by - January 24, 2019
It has been three and a half years since BMW unveiled the sixth generation of the BMW 7 Series. Thus, it is really about to give the 7 Series a...
by - January 17, 2019