General Motors has put aside 5 percent of its common shares for employees and dealers to buy in ahead of its initial public offering (IPO).
The General disclosed the amount in a filing with the U.S. Securities and Exchange Commission today, having asked investment bankers managing the offering to reserve shares for retirees, employees, and dealers of GM’s U.S. and Canadian operations.
While an official date and price have not been publicly announced, GM Chairman Ed Whitacre believes the price will be somewhere in the vicinity of $20 to $25. The General has previously announced plans to launch the IPO somewhere in the end of 2010, with analysts expecting the initial sale to take place in November.
Employees and dealers have just over a full week – or until October 22 – to sign up to buy shares at the initial price of the IPO. The minimum investment amount has been set at least $1,000, or 40-50 shares per person given the $20-$25 price range.
Meanwhile, it’s still unclear whether the automaker will limit its IPO to foreign investors.