New York, Nov 4 (DPA) General Motors, the largest US car maker, will be returning to the stock market later this month with the strong wind of profit in its sails, the company indicated Wednesday.
In a preview of its third-quarter results, GM said it expected earnings of $1.9-2.1 billion, which would make it the third quarter in a row of profits for the beleaguered and bailed-out car producer.
Official results for the quarter are to be released Nov 10.
‘We are extremely pleased with the level of progress the company is making,’ said Chris Liddell, GM vice chairman and chief financial officer, in a statement. ‘We will deliver a solid and profitable first year post-bankruptcy, and we are continuing to improve our balance sheet and most importantly, the quality of our vehicles.’
GM confirmed earlier reports that the launch of its initial public offering (IPO) later this month will include 365 million shares of common stock, at $26 to $29 a share, in addition to 60 million shares of preferred stock at $50 a share.
The IPO, which GM said was registered Wednesday with the Securities Exchange Commission, is expected to raise more than $13 billion.
The income will help GM buy back part of the US government’s 61-percent stake in the company, invested to bring the company out of bankruptcy last year. The Canadian government owns another 10 percent.
After the IPO, the US stake would be reduced below the psychologically important 50-percent mark.
GM had to file for bankruptcy protection in June 2009 after racking up some $88 billion in losses since 2004.