GM Seen Raising $10 Billion in IPO: Reports

DETROIT ( TheStreet) -- General Motors is expected to price its shares between $26 and $29 raising about $10 billion in an initial public offering, according to reports.

Meanwhile, the U.S. government is expected to reduce its stake in the automaker to around 43% from 61% not including any extra share allotments bankers may offer to satisfy strong demand, the Associated Press reports, citing three people brief on the IPO.

The IPO is expected to take place around Nov. 18.

The Wall Street Journal reports the U.S. will cut its stake in General Motors to about 35%, citing new figures the company plans to disclose Tuesday.

GM's new projections say it could have a stock-market value at the start of trading of $50 billion, about the same as Ford ( F), and that it could be as high as $60 billion, the Journal reports, citing people familiar with the plan.

GM won't make any money from the sale of the 365 million common shares in the IPO. Instead, it will sell roughly $3 billion worth of preferred stock that will convert to common stock in 2013, the AP reports, citing the people familiar with the sale. GM will use the money from the sale of preferred stock to repay loans and make pension payments.

Terms of the IPO aren't final because GM's board still has to approve them, AP says.

-- Written by Joseph Woelfel

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