GM to Sell Preferred Stock with IPO

Unfortunately for both those expecting to see a GM IPO on Tuesday and for us who reported it, the infamous inside sources got it wrong yesterday. Or they didn't, and something happened, pushing what is expected to be one of the biggest IPOs in history to an undetermined date.

Of course, as soon as Tuesday came and went with no GM IPO in sight, rumors began spreading like wildfire. The latest is the one saying that GM is considering selling preferred stock alongside the common shares offered through the IPO.

Again, inside sources talking to Bloomberg say GM will be filing the IPO today with the Securities and Exchange Commission. The addition of preferred shares was made out of the need to attract hedge funds and other new investors. According to the sources, the money received for preferred shares will be used for “general corporate purposes.“

As said, the GM IPO is expected to raise between $15 billion to $20 billion, making it the second largest public offering since Visa's in 2008 ($19.7 billion). The main goal is, according to sources, to sell a fifth of the Treasury’s 304 million shares, making the US a minority owner (the US now holds 61 percent of GM).

In addition to selling US' stock, GM might issue new shares (some sources deny this will actually happen) and sell the ones owned by Export Development Canada and the UAW retiree healthcare trust fund.

The IPO is named within GM Project Dawn. The new era for the carmaker will be broadcasted live on the boards of the New York Stock Exchange and the Toronto Stock Exchange, where GM plans to trade its shares.