DETROIT (Bloomberg) -- General Motors Co. will probably price its initial public offering at or above the high end of the range next week while exercising an option to sell more shares, according to two people familiar with the IPO.
The reception six GM executives have received from investors on this week's roadshow to promote the IPO has been strong enough to sell the shares at the high end of the $26 to $29 offering range or above $30, said the people, who asked not to be identified because the information is private.
SAIC Motor Corp., GM's partner in China, will likely be among the buyers, three people familiar with the plans said.
GM will probably exercise its so-called greenshoe option, granting underwriters 54.8 million more shares, the people said.
That would help the U.S. Treasury Department recoup more of the public's $49.5 billion investment in the automaker. Strong demand for the IPO may also help secure a higher price when the U.S. sells most of its shares in later offerings.
GM's offering of 365 million shares, or 24 percent of the automaker's stock, is already multiple times oversubscribed, one of the people said. The automaker is scheduled to price the IPO on Nov. 17.
Without issuing the greenshoe, the Treasury Department's stake would fall to 43 percent from 61 percent now, according to the regulatory filing. If the overallotment option is used, the stake would fall to 41 percent, according to the filing.
The United Auto Workers' retiree health-care trust would reduce its stake to 15 percent from 20 percent under the base plan, and the Canadian government position would drop to 9.6 percent from 12 percent. With the greenshoe, the union trust would fall to 15 percent and Canada to 9.3 percent.
SAIC is likely to buy a small number of shares, three people said. The Chinese automaker aims to show support for its U.S. partner, one of the people said. The Treasury Department wants to avoid the impression that a Chinese company is acquiring GM, two of the people said.