Despite a recent influx of failed initial public offerings in the U.S., it appears that General Motors and the U.S. Government will be moving forward on returning GM to public ownership. According to sources familiar with the situation, the IPO announcement may come as soon as early July. If announced, the news would come right around the one-year anniversary of the new General Motors Company.
As reported, GM and the U.S. Department of Treasury will likely select Morgan Stanley and JP Morgan as the underwriters of the IPO. GMI sources have stated that the logic of having two underwriting firms is so that the IPO can reach more people. Morgan Stanley will likely be selected to reach the public—average investors. JP Morgan, being a major Wall Street firm, will be selected to reach out to Wall Street investors.
While the final details of the IPO are still being worked out, sources also mentioned that the goal is to reduce the U.S. Government’s stake in the company to around 35-percent or less during the first sell off. The exact timing of the IPO is still unknown, but expected late this year or very early in 2011.