The US car maker General Motors has unveiled its plans for an initial public offering (IPO) which is expected to be the second biggest share sale in the history of US. The company has submitted its proposal officially with the Securities and Exchange Commission.
The company General Motors is 61% owned by the government of US.
General Motors recently filed registration papers for an initial public offering alongside the US market regulator SEC, thereby initializing the company's efforts to come out of government help.
GM has to its account a filing of a more than 700-page draft prospectus with the Securities Exchange Commission in order to acquire approval on its suggested initial public offering.
According to the documents filed to the Securities and Exchange Commission (SEC) by General Motors (GM), the company has sought an approval for an initial public offering (IPO) of its shares. The approval will pave the way for the automaker to pay back some of the $50 billion investment that the taxpayers made to rescue the company a year back.
The world's biggest disk-drive motor maker, Nidec Corp has said that it will be buying Emerson Electric Co. This is being done so that Nidec is able to expand its home appliances and automobile related business in US.
Money for the deal which will be between 60 billion yen and 70 billion yen will be paid in form of cash September 30 is scheduled to be the deadline date for finishing the deal.
Plans of US automaker, General Motors Co to sell preferred stocks along with its IPO of common shares has been postponed in the sense that it will now be using the proceeds from the preferred stocks and will not stakes in the form of common offerings.
This was revealed in the draft filed by the company with respect to its offering. The information was given by two people who are close to the development and did not wish to be named.
The famous US car maker General Motors is expected to unveil its detailed flotation plans in this week. General Motors was rescued from a financial collapse in last summer by the Obama administration but now it has seen a handsome amount of profit and is ready to bounce back to the stock market.