GM Files for Landmark IPO to Repay Bailout

[Ford Jellymoulds]

CNBC...General Motors filed for an initial public offering of stock on Wednesday, clearing a key hurdle toward repaying taxpayers fora controversial bailout just over a year after its bankruptcy.

GM's initial filing with U.S. securities regulators did not say how many shares would be sold or give an expected price range for what will likely be one of the biggest IPOs ever.

 

GM filed for an IPO of up to $100 million. That does not represent the full amount that GM hopes to raise, people familiar with the situation have told Reuters. GM could raise up to $20 billion in its IPO, the people said.

 

Attention has increasingly focused on the amount the IPO will raise, and if it will be enough, as some suggest it should be, to repay taxpayers on the hook for the controversial bailout.

 

The automaker said it planned to list the shares on the New York Stock Exchange and the Toronto Stock Exchange.

 

Trading in GM shares is expected to start between late October and the U.S. Thanksgiving holiday, which is the fourth Thursday in November, according to people involved in the process. A stock offering in late October would mean trading would start just before the November congressional elections.

 

The Obama administration wants to be able to cast the $50 billion GM bailout as a financial success in the face of public skepticism and Republican political opposition.

 

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[billyk24]

Will potential stock purchasers remember how the "old GM" stuck it to the stockholders during their Bankruptcy?