WASHINGTON — General Motors plans to file as early as next week a detailed statement outlining its proposed initial public stock offering, say officials familiar with the effort.
The statement will list Morgan Stanley and JPMorgan Chase as lead underwriters for the sale of part of the U.S. government’s 60.8 percent stake in GM. The sale could be before November’s elections.
The two banks, and smaller underwriters, are expected to share a fee for handling the sale, which could range from $75 million to $150 million based on the stock sold, according to one U.S. Treasury Department official.
“General Motors is going to have an IPO,” White House Chief of Staff Rahm Emanuel told ABC in an interview this week. “We’re righting an industry that was not doing itself, or the American people or its workers, the right thing.”
The Treasury has hired New York investment bank Lazard Frères & Co. to advise it.
An IPO will allow GM to again be a publicly traded company, the first step toward the government’s selling its stake.
The initial selling price will give a snapshot of how much taxpayers will recoup from their $50 billion rescue of GM. By some estimates, taxpayers could lose $10 billion or more.
