SAN FRANCISCO (MarketWatch) — General Motors Co. is reportedly looking to sell $10 billion in common stock when it launches its initial public offering, which is expected to take place later this month.
The sale, along with $3 billion in preferred stock, would turn the U.S. government into a minority shareholder of the Detroit car maker, according to a report from Reuters on Monday that cited people familiar with the matter.
Now, GM /quotes/comstock/13*!gm (GM 0.00, 0.00, 0.00%) is planning to sell 365 million common shares for $26 to $29 a share, and will detail the changes in an updated prospectus with the Securities and Exchange Commission to be made public Tuesday.
The sale will likely include a stake of up to $2 billion for four or five sovereign-wealth funds, Reuters reported. The IPO will allow the U.S. Treasury to pare its 61% stake down to 43.3%.
The filing follows closely on the heels of GM’s move to bolster its finances by repaying $2.1 billion to U.S. taxpayers and making early payments to pension and retiree health plans.
GM is expected to begin its IPO road show Wednesday, price its share offering on November 17 and begin trading in New York and Toronto the following day.
Also on Wednesday, GM is slated to provide more evidence that its recovery is on track when it hands in October U.S. sales, though the company is expected to be one of the rare manufacturers to post a decline. Read more about upcoming monthly car-sales results.
