General Motors has now filed the paperwork for an IPO, meaning that the U.S. Treasury will be able to reduce its stake in the largest American automaker. It is not certain by how much, but the more they can reduce the share and gain back money, the better it will sit with the taxpayer – who had to bail them out in the first place.
According to Bloomberg, the U.S. Treasury looks set to sell one-fifth of their stock, which currently stands at 304 million. Experts believe that the initial public offering will take place in November.
This is seen as a positive sign, and shows how hard GM has been working to get themselves out of the huge hole that they got themselves in. This was brought on by a number of things, poor sales and bad judgments were just two factors why the automaker had to be bailed out by the taxpayer in the first place.
GM hopes that its IPO will earn them around $16 billion, if they achieve this figure – then it will be the second largest in the U.S., with Visa being the first.