The US government said that General Motors' (GM) initial public offering (IPO) will be open to foreign investors, aimed particularly at North American investors, the US Treasury said in a statement over the weekend.
In a regulatory filing in August with the US market regulator, GM disclosed its plans for an IPO, 13 months after it emerged from bankruptcy protection. (See: GM files documents for IPO)
The IPO would lead to the US government shedding part of its 61-per cent stake in the automaker, something that GM is very eager to see as it wants to shed its nickname of 'Government Motors'.
The US Treasury had bailed out GM with $49.5 billion to help it emerge from bankruptcy protection as a leaner and more robust automobile maker. (See: General Motors emerges from bankruptcy)
After GM repaid $6.7 billion of the loan, the US government swapped about $43 billion for a 61 per cent equity stake to become the controlling shareholder in GM, once considered the pride of America and an automobile powerhouse.
The Treasury Department said in a statement, ''We expect that potential investors will be sought across multiple geographies with a focus on North American investors, in line with what is typical in similar transactions.''
Although GM has not revealed the pricing of its shares, analysts have surmised that GM is likely to seek to raise between $10 billion and $20 billion in capital.