Source: GM to File for IPO Mid-August
General Motors Co plans to file its initial public offering in mid-August, sources familiar with the situation told Reuters.
General Motors is also in talks with banks for a revolving credit line worth $5 billion, sources said. Bank of America Corp , Citigroup Inc , JPMorgan Chase & Co and Morgan Stanley have already agreed to provide $500 million of credit each, with other banks still to be chosen, a source said.
The credit line is expected to be finalized in the next two weeks, about a month before the automaker files for its IPO, a source said. Earlier media reports said the IPO filing was expected in early July.
GM spokeswoman Noreen Pratscher declined to comment.
GM is more likely to cut the valuation on the IPO than delay it, said one source, who requested anonymity because the talks are confidential.
The U.S. Treasury, which owns nearly 61 percent of the automaker's common shares after a $50 billion bailout, plans to sell $10 billion to $12 billion in shares, sources said.
But a Treasury official said: "It is way too early to know. The pricing and ultimate size of Treasury's stake are decisions for later in the year."
GM, which declared bankruptcy last year, has emerged from Chapter 11 protection, and an IPO is a key step for the automaker to wean itself away from government support.
GM is not expected to sell shares immediately, but plans to sell about $3 billion in mandatory convertible notes that convert into shares in the future, a source said. Proceeds from the IPO are expected to be used to repay debt and fund GM's pension liability, the source said.
More Industry

Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →
Auto Dealers Feel Better But Not Great
A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.
Read More →
New-Vehicle Sales Picture Relative
A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.
Read More →
Auto Group Acquires Third Nissan Rooftop
Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Building an Extraordinary F&I Agency
Work to determine your specialized talent, because that fact will determine everything about your agency’s future.
Read More →
Recipe for Compliance
The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.
Read More →
EVs Getting More Attractive
A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.
Read More →
EV Sales Drop in April Following Surge
North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.
Read More →