GM IPO will be one of the biggest ever. The Detroit automaker hopes to raise between $12 billion (€9.3 billion) and $16 billion (€12.4 billion).
GM has filed its papers for an IPO.
The Detroit automaker has filed a registration statement with the Securities and Exchange Commission (SEC) in the United States which will return GM to the stock market and once again be a publicly traded company.
But details are few on what the IPO will look like. GM has not stated how many shares it will sell nor said what it hopes the prospective price range to be. GM has said only that it hopes to raise between $12 billion (€9.3 billion) and $16 billion (€12.4 billion) in the IPO, which would still make it one of the largest ever.
The United States federal government currently holds a 61 percent stake in GM, which will drop to below 50 percent in the IPO. GM said it will sell around a fifth of the 304 million shares held by the U.S. government.
GM sales have been growing and the company has been profitable for two consecutive quarters. But analysts have their reservations and were hoping for a longer growth trend before an IPO.
"GM has a lot of great product in the pipeline. But the most recent economic forecasts make the timing of the IPO a little more problematic," said AutoTrends Consulting's Joe Phillippi. Economic conditions in the United States are still uncertain as growth and job figures show no signs of a full recovery after the recent period of recession.
But GM remains cautiously optimistic. It forecasts its global market share to grow over the next four years to 12.4 percent by 2014, up from 11.9 percent for 2010.