General Motors’ IPO announcement of up to US$23bn today (18 November) will see the US Department of the Treasury’s stake in the automaker fall by nearly half.
Should the underwriters’ over-allotment option be exercised in full, the aggregate gross proceeds to the Treasury are expected to be around US$13.6bn before fees linked to the offering.
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The Treasury’s ownership of GM’s outstanding shares of common stock will fall from 60.8% to 36.9% – or 33.3% if the over-allotment is exercised.
“GM’s initial public offering is an important step in the turnaround of the company and for our work to recover taxpayer dollars and exit this investment as soon as practicable,” said Treasury Secretary Tim Geithner.
“It is now widely recognised the taxpayers’ investment not only helped save jobs during the worst economic crisis in a generation but also gave the auto industry a solid foundation on which to build.”
