GENERAL MOTORS could file a registration for its initial public offering (IPO) of up to $20bn (£12.8bn) as soon as tomorrow, after it reports quarterly results today, three people with knowledge of the process said.
GM’s IPO registration was expected later this month, but the company and advisers have sent conflicting signals about how quickly that first step toward reducing the government’s majority stake could happen.
The IPO filing was expected in mid-August, but GM chief executive Ed Whitacre said last week that the company did not plan to file a registration in the near term, prompting speculation that the timing had slipped.
The timing of the IPO filing had not yet been set and hinges on the progress GM makes on securing a credit facility in ongoing talks with banks, according to a source.
GM, now 61 per cent-owned by the US government, is counting on the momentum from its second consecutive quarter of profits to help it clinch a $5bn bank credit facility as it prepares for an offering by year end.
If the American automaker does file for an IPO valued at $20bn, it would be the biggest US IPO since credit card firm Visa’s $19.7bn offering in March 2008.