GM will re-enter the stock market after it was forced into a state-backed bankruptcy reorganisation
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in June 2009, reducing the government's stake and continuing the company's rehabilitation.
Banks "will set the (stock) price on Wednesday and trading will start on Thursday," the person said on condition of anonymity.
GM announced the initial public offering (IPO) on November 3, an offer worth as much as $15 billion if a high-demand clause is activated.
And high demand looks likely according to David Whiston, a Morningstar analyst who predicts a "mass over subscription" for the stock offering as investors try to get their hands on the one-time Dow Jones Index component.
The offering will consist of 365 million shares of common stock, with an estimated price range of $26 to $29 per share. But Whiston sees the price per share hitting $30 to $33, much more than previously thought.
GM will also issue 60 million preferred shares at $50 per share.
Even given the lower price range GM's offering will still be the second largest in the United States of all time after Visa's $17.9 billion IPO in 2008.
The sale will have political as well as economic ramifications.
Nationalised during the financial crisis, GM is currently 60.8 per cent owned by the US federal government, while the Canadian government owns 11.7 per cent of the capital and the United Auto Workers union holds a 19.93 per cent stake including warrants.
The US government's share is expected to fall to 43.26 per cent after the sale, according to research firm Dealogic.
That would provide a victory for President Barack Obama as his administration moves beyond an election "shellacking" fueled -- in part -- by anger about the government's economic policies, including the bailout.
Last week, GM posted a two-billion-dollar third-quarter profit after years of painful cuts, a major revamp of its product portfolio and a slow-but-steady recovery by the auto industry from the worst downturn in decades.
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