General Motors Co. is preparing for an IPO to sell 20% of the Treasury’s stake in the automaker and reduce the U.S. to a minority owner, said two people familiar with the plan.
The aim is to sell a fifth of the federal government’s 304 million shares, said the people, who asked not to be identified revealing private discussions. That would reduce the Treasury Department’s stake to less than 50% from 61% now.
Final decisions on which owners will sell how many shares haven’t been made and may change, the people said.
A registration statement may be filed in August, aiming for a November stock sale, said four people familiar with the plan. The sale will probably raise $10 billion to $15 billion, depending on the company’s performance, the strength of the economy and the health of the IPO market, the people said.
An August filing means Detroit-based GM could have the IPO ready around the time of the Nov. 2 congressional elections, the people said.
The automaker may also issue new shares to raise cash and sell shares owned by Canada and a United Auto Workers VEBA, one of the people said.
Selim Bingol, a GM spokesman, declined in an e-mail to comment on the matter.
The IPO will be managed by J.P. Morgan Chase and Morgan Stanley, people familiar with the matter have said. They will collect fees of 0.75% of the sale, said a person briefed on the matter. Such fees would be a quarter of the usual rate for large stock sales.
J.P. Morgan had offered to accept payment in equity instead of cash, though that idea was rejected by GM and the Treasury, two people said.
