GM files documents for IPO

Once considered the pride of America and an automobile powerhouse, General Motors yesterday has disclosed its plans for an initial public offering (IPO) in a regulatory filing with the US market regulator, 13 months after it emerged from bankruptcy protection.

GM filed an official a 700-page S-1 document with the Securities and Exchange Commission, which may be the largest IPO in US history.

Although the Detroit-based carmaker did not reveal the pricing of its shares, various media reports suggested that GM is likely to seek to raise between $10 billion and $20 billion in capital. 

''The amount of securities offered will be determined by market conditions and other factors at the time of the offering.  The number of shares to be offered and the price range for the offering have not yet been determined,'' said GM in a statement.  

According to The Wall Street Journal, the total market capitalisation of GM could be between $60-$90 billion and if the carmaker does raise $20 billion based on the upper limit assumption, its IPO could be close or eclipse Visa's record offering of $19.7 billion in 2008.

In its filing, GM said it will offer common stock and Series B preferred stock on the New York Stock Exchange, with common stock also due for listing in the Toronto Stock Exchange.