GM Preparing IPO for July

By Tim Healey

Tim Healey

Contributing Writer BIO

Tim Healey was formerly an associate editor at Consumer Guide Automotive in Chicago. Before that he worked in the automotive industry as a service... More

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3 1,367 views June 23, 2010

2010 Cadillac CTS Wagon

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Almost a year after it went through bankruptcy, General Motors is preparing to go public once again.

The General is readying a statement that will outline its plan for a public offering of the company's stock. The initial public offering is expected to take place in July, and the listing could bring in up to $20 billion for the company.

GM is also talking with Wells Fargo and JPMorgan Chase about potential deals that will make it easier for customers to get approval for auto loans.

The company is expecting to raise $15 to $20 billion in the offering, thanks to demand from investors that appears to be stronger than what most observers were expecting.

GM's CEO, Ed Whitacre, and other company executives have been pushing to have the IPO this year. As it stands now, the U.S. government has a 60.8 percent ownership share in GM. Investors will by buying part of that stake.

GM was once publicly traded, but when it entered bankruptcy, it was split into two entities--"old GM" and "new GM." The "old" GM contained all of the company's bad assets, while the "new" GM continued the remaining good assets. It also went private as part of the process, but now that a year has passed and the company is the process of launching new models like the 2010 Cadillac CTS Sport Wagon, the 2010 Cadillac SRX, and the 2011 Buick Regal, GM may have built enough positive buzz to draw investors who might have previously been skittish about the automaker's future.

[Source: Chicago Breaking Business]