DETROIT — General Motors on Wednesday filed the first batch of paperwork required to sell stock to the public, a step that brings the automaker closer to its goal of shedding government ownership.
The 700-page filing, submitted to the U.S. Securities and Exchange Commission, laid out GM’s business plan and the risks facing investors thinking of buying shares in the revamped company.
But the document was thin on details about the stock sale itself.
GM didn’t say how many shares would be sold, at what price or when, although experts say the initial public offering could come as early as October. It also didn’t say how many shares GM’s majority owner, the U.S. government, plans to unload. However, GM did say that its stakeholders initially will sell common stock, while GM will sell preferred shares.
The IPO would have to bring in $70 billion just to pay back all of the automaker’s stakeholders. That kind of money would make it the largest U.S. IPO ever.
The U.S. government owns about 61 percent of the company, which it got in exchange for giving GM $50 billion in survival aid last year. GM has repaid $6.7 billion, and the remaining $43.3 billion was converted to the ownership stake. Other stakeholders include a United Auto Workers health care trust and the Canadian government.
GM said in the filing that the U.S. government would continue to own a “substantial interest” in the automaker after the IPO.
Demand for GM’s new shares isn’t known. In the coming weeks, the company will pitch itself to big investors such as pension, mutual and hedge funds, looking to get buyers to commit.
There are risks. GM lost about $100 billion in the five years leading up to last year’s bankruptcy.
However, a quick run through bankruptcy court cleansed GM of burdensome debt. GM earned a healthy $2.2 billion in the first half of this year despite depressed U.S. auto sales, and it’s set up to do better if sales rebound in the coming years.
The company said it will trade on the New York Stock Exchange under the ticker symbol “GM,” the symbol under which it traded before it entered bankruptcy.
GM chronology
Key events at post-bankruptcy General Motors:
July 10, 2009: Emerges from bankruptcy six weeks after it filed for Chapter 11 protection, with the federal government as its largest shareholder.
Sept. 30: Announces plans to shut down Saturn brand, scaling back to four brands from eight.
Nov. 2: Government Accountability Office says GM and Chrysler probably won’t be valuable enough for the Treasury Department to break even on $80 billion in bailouts.
Nov. 16: Loses $1.2 billion between July and Sept. 30.
Dec. 1: Chief executive Fritz Henderson resigns after eight months; chairman Ed Whitacre later takes over.
Jan. 25: GM sells Saab brand to Dutch company Spyker for $74 million.
Feb. 24: Drops Hummer brand as its sale falls through.
April 7: Loses $3.4 billion for the fourth quarter of 2009.
April 21: Repays $8.1 billion of loans to the U.S. and Canada.
May 17: Reports first-quarter profit of $865 million, its first quarterly profit since 2007.
June 17: Keeps most of its U.S. factories open through the normal two-week summer shutdown to meet demand.
July 22: Buys AmeriCredit for $3.5 billion to expand loans to customers with poor credit.
Aug. 5: Says it will have 4,500 U.S. dealers — 25 percent fewer than in 2009 — after completing arbitration with dealers who fought GM’s bid to drop them.
Aug. 12: Reports $1.3 billion profit from April through June; board member Daniel Akerson to replace Whitacre as CEO on Sept. 1 and as chairman at year’s end.
Wednesday: Files initial paperwork to sell stock to public. The Associated Press
