General Motors filed for a landmark public stock offering on Wednesday that would let the federal government begin selling off its stake in the automaker as well as raise money for GM's turnaround. GM said that it would offer both common stock and preferred stock in the offering, which could begin as early as October, when the Obama administration will be seeking to portray its aid to the auto industry as a success before midterm elections in November.
The IPO could raise between $12 and $16 billion and has the potential to be the second-largest in US history, after that of the credit card giant Visa, which raised more than $19 billion in March 2008. The common shares will be sold by GM's current shareholders, the largest of which is the federal government. It exchanged about $43 billion in aid to GM for a 61% interest in the automaker.
GM will offer preferred shares, which have fixed return like dividend, to institutional investors.
