GM mulls to raise $13 bn from initial share sale

General Motors, majority-owned by the US government, plans to raise $13 billion through one of the largest initial share sales in American corporate history.

The auto maker had received around $40 billion from the US taxpayers to tide over the ravaging financial meltdown in 2008-09.

GM on Wednesday said it was looking to mop up $13 billion through an initial public offering (IPO).

"The offering will consist of 365 million shares of common stock to be sold by certain of its stockholders. The company will also issue 60 million shares of its preferred stock with a liquidation amount of $50 per share," the car maker said in a statement.

The shares to be sold is expected to be priced in the range $26 to 29.

The US Treasury Department has little over 60 per cent shareholding in GM. Based on the projected price range for the share sale, the Department's stake in the auto maker would be worth around $26 billion.

According to reports, post the IPO, the Treasury Department's stake in the auto maker would fall to about 40 per cent.