With General Motors’ long-awaited IPO expected to take place in a matter of days, the once-bankrupt automaker will begin the process of selling off the 60.1% holdings of the U.S. Treasury, a stake that, among critics, has earned GM the sobriquet of “Government Motors.”
But the alternative might prove equally unsettling to those who prefer to get Washington out of Detroit – even if it gets back most of what taxpayers have invested to keep the domestic automaker alive.
With GM’s IPO expected to take place on Thursday, the 18th, there are growing signs that the maker’s original plan – which called for offering shares, after a 3-for-1 stock split, at $26 to $29 each – may be significantly boosted by strong demand. But among those lining up to invest in the corporation long seen as a symbol of American industrial might are a variety of banks and funds based in places like China and the Middle East.
Among the likely investors is SAIC, GM’s primary Chinese partner – which happens to be owned by the Shanghai government. It is reportedly planning to pump in $500 million out of the $13.6 billion or more that General Motors hopes to raise through its initial public offering.