GM IPO, in August

The shroud of uncertainty surrounding the moment when American manufacturer GM will make its initial public offering (IPO) is slowly coming off, as sources close to the matter begin leaking info. Whereas up until now the general feeling was GM will not be on the Wall Street board anytime before the fourth quarter of the year, it now appears August is the likely date for the carmaker to go public.

According to MSNBC, citing internal sources, GM is also seeking a $5 billion revolving credit line from Bank of America, Citigroup, JPMorgan Chase & Co and Morgan Stanley, who will chip in $500 million each.

Once the credit line is finalized, it would take about a month for GM to go public, as the carmaker would rather cut the valuation on the IPO than delay it, the source said.

According to earlier reports, the IPO would shave 20 percent of the stake held by the US through the Treasury, meaning the US would become a minority owner (the US now holds 61 percent of GM). To do so, GM would be throwing into the market a fifth of the government's 304 million shares.

In addition to selling US' stock, GM might issue new shares and sell the ones owned by Export Development Canada and the UAW retiree healthcare trust fund. The IPO will be handled by JPMorgan Chase & Co. and Morgan Stanley.

Last year, GM received $52 billion from the US government to survive the bankruptcy process. Out of that amount, $45.3 billion was converted into equity as the government got 61 percent of the car manufacturer. Canada owns 11.7 percent while the UAW retiree healthcare trust fund holds 17.5 percent.