DealZone

The Great American IPO?

June 11, 2010

GMWe (the taxpayers)  paid some of the $50 billion to bail General Motors out of its bankruptcy misery last year.  Now, the former American industrial icon is going to launch one of the biggest U.S. IPOs  of the decade.

According to estimates by Independent International Investment Research, GM’s initial offering would raise $12 billion, higher than any U.S. IPO this year and exceeding all over the last ten years, except for Visa’s offering in 2008 and AT&T Wireless in 2000.

The Wall Street Journal said this morning that GM is close to picking JPMorgan and Morgan Stanley as lead underwriters for the IPO. The U.S. Treasury, which owns  a 61-percent stake in GM, said on Thursday that the timing would be decided by GM, based on market conditions.

Creating an appetite for a company that lost more than $80 billion in four years and has more than $14 billion debt, is not going to be an easy sell.  Still,  with GM swinging back to profitability and auto sales showing a rebound,  the former backbone of industrial America coud just be the next Great American IPO.

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