General Motors lines up $20bn IPO

America's largest carmaker General Motors (GM) is set to return to the market a year after taxpayers saved the firm from going bust.

In a remarkably swift turnaround in fortunes, the group filed an official application with the Securities and Exchange Commission to re-list last night. It is also looking to list on the Toronto stock market.  

While there was not any reference to the price its was looking to get its shares off at, reports suggest it could raise between $10 and $20 billion on a market capitalisation of between £60 and $90 billion. This would make it one of the largest initial public offers in US history.

The IPO is expected to take place later this year but far from certain market conditions leave the company facing a delicate timing issue.

In a statement accompanying the filing with the SEC, the firm said: 'The amount of securities offered will be determined by market conditions and other factors at the time of the offering.'

The 102-year old carmaker was humiliatingly dubbed 'Government Motors' after it took its begging bowl to the state in the dire market condtions last year. The taxpayer had to plough $50 billion into the firm leaving the US Treasury with a 61% stake in the stock.

In separate statement last night, the Treasury said it would would use the listing to sell down its stake, although it did not disclose how much it would sell.

The firm, which manufactures brands including Vauxhall, Buick and Chevrolet, has undertaken drastic action in its bid to become a slicker operation. It has slashed thousands of jobs, dropped a number of brands and closed a number of factories.  

This appears to have had the desired impact with the group returning to profit in the first two quarters of the year, posting earnings of $1.2 billion and $1.6 billion respectively.