American Axle & Manufacturing Holdings (AAM) hopes to raise up to $US108m from a public offering of 14m shares of its common stock. Its part of a strategy to boost liquidity at the partsmaker, originally spun off from a General Motors component operation, which narrowly escaped bankruptcy earlier this year.

Net proceeds are expected to be between $94m and $108m if all the shares are exercised, Dow Jones reported.

AAM plans to use the funds for general corporate purposes, it said in a statement.

The offer is being handled by JP Morgan and Bank of America Merrill Lynch.

The company is also planning an offering of senior secured notes. The interest rate is yet to be decided.

AAM said it would use the net proceeds of that offering to repay outstanding debts under a revised creditors agreement dated 14 June, 2007.

Dow Jones suggested response to the stock offering should be high as investors turn more positive about the US autos sector following the post-bankruptcy reorganisations of GM, Chrysler Group and several parts makers.

It noted that AAM last September signed an agreement with its banks to amend the conditions of its term loan and revolving credit facilities. It also reached a new commercial agreement with GM whereby it would receive as much as $210 million in funding from its key customer and former owner.

The company spent most of July and August negotiating with its banks to receive new terms in an effort to avoid following other parts makers such as Lear and Visteon into bankruptcy, the news agency added.

The company was granted four waiver extensions before finalising a deal.

AAM also reiterated that sales would double by 2013, though its 2010 estimate of $1.8bn to $2bn was below analysts' average estimate of $2.15bn, according to a survey by Thomson Reuters. The company was also profitable in October and November and has secured $1bn in new components supply contracts to the end of 2014.

However, American Axle said it doesn't expect to declare or pay any cash dividends in the "foreseeable future." The company froze dividend payments in January as auto makers cut production, Dow Jones added.