General Motors Co. may sell next week’s initial public offering above the forecast price range and exercise an option to increase the size of the IPO amid signs of brisk demand, two people familiar with the deal told Bloomberg.

The reception six GM executives have received from investors on this week’s roadshow to promote the IPO has been strong enough to sell the shares at the high end of the $26 to $29 offering range or above $30, said the people, who asked not to be identified because the information is private. SAIC Motor Corp., GM’s partner in China, will probably be among the buyers, three people familiar with the plans said.

GM will probably exercise its so-called greenshoe or overallotment option, granting underwriters 54.8 million more shares, the people said. That would help the U.S. Treasury Department recoup more of the public’s $49.5 billion investment in the Detroit-based automaker. Strong demand for the IPO may also help secure higher prices when the U.S. sells the rest of its shares in later offerings.

Noreen Pratscher, a GM spokeswoman, declined to comment.

The offering of 365 million shares, or 24 percent of the automaker’s stock, is already multiple times oversubscribed, one of the people said. Banks arranging the sale will continue to take orders until the roadshow ends next week, to avoid the perception that any potential investors were crowded out, the person said. GM is scheduled to price the IPO on Nov. 17.

The automaker is getting orders from large institutional investors who are likely to be long-term shareholders at about $32 a share, one of the people said. About 15 percent to 20 percent of the offering will be allocated to individuals, the person said.

GM’s stockholders may sell about $2 billion in shares to sovereign wealth funds in the Middle East and Asia in allotments of about $500 million, the person said.

Joe Phillippi, a principal of consulting firm AutoTrends Inc. in Short Hills, New Jersey, said the fact that the IPO was being sold to institutional investors was a good sign for taxpayers because it means GM is finding eager buyers without having to aggressively market the stock to individuals.

“They only stuff the stock into retail when the deal is going bad,” Phillippi said.

Large institutions are likely to hold the stock longer than hedge funds or individuals, meaning that they won’t sell quickly and put downward pressure on the shares, he said.

The offering comes 16 months after GM emerged from a U.S.- backed bankruptcy. The company reported third-quarter net income of $2.16 billion this week, bringing the automaker’s earnings this year to $4.77 billion. That tops the $4.46 billion profit by Toyota City, Japan-based Toyota Motor Corp., according to data compiled by Bloomberg.

The Standard & Poor’s 500 Index has climbed to a two-year high this month amid signs that the U.S. economy won’t slip back into a recession after the longest contraction since the Great Depression.

“They left enough money on the table that money managers think there is some real upside,” Phillippi said. “GM had a good third quarter.”

Without exercising the greenshoe, the Treasury Department’s stake would fall to 43 percent from 61 percent now, according to a regulatory filing with the Securities and Exchange Commission. If the overallotment option is used, the stake would drop to 41 percent, according to the filing.