WINDERMERE, Florida (Stockpickr) -- According to a number of news sources, the much-anticipated General Motors initial public offering should come to market sometime in late November. There are reports that GM could file registration forms for its IPO as soon as today.The U.S. Treasury Department currently controls 61% of GM, or around a $49.5 billion stake in the auto maker. Clearly, the U.S. government would love to turn a profit on its GM stake since it's taken a lot of heat for bailing out the struggling auto maker. One way the government could increase the probability of a higher GM share price is by pricing the IPO at a price that will attract more longer term retail investors. The company is looking to sell 365 million shares at the low price point of $26 to $29 a share, raising $9.5 billion to $10.6 billion. This low price point will look very attractive to retail investors, but in the end, the company will need to report solid numbers to increase its share price over time. GM also plans to sell $3 billion of preferred shares that will be convertible into common shares in 2013. The preferred shares will also help to attract more stable longer-term investors into the stock. >>Also: Top-Rated Automobile Stocks If the company prices the offering between $26 and $29, that would place the market cap for GM at around $50 billion to $60 billion, which unfortunately would fall short of the $67 billion needed for U.S. taxpayers to break even on the position held by the Treasury. However, this is good news for the IPO, because the government is not going to sell a large amount of its stake at a loss. In fact, this should help to keep the government in the stock for longer than it might want, which will keep a lot of supply off the market. Due to the size of the government's position in GM, it won't be able to cash in on its stake without putting massive sell pressure on the stock. I highly doubt the government wants this IPO to go off with issues like large drops in price, which will upset early investors. The government wants this IPO to be a success if for no other reason than to score some political points and show the naysayers that the bailout worked.
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