NEW YORK -- Delphi Automotive LLP hired Goldman Sachs Group and JPMorgan Chase & Co. to lead an initial public offering that may raise more than $1 billion and value the parts maker at $10 billion, a person with knowledge of the plans said Tuesday.
Delphi, once the largest U.S. auto parts maker, also hired Bank of America Corp., Citigroup Inc., Barclays Plc and Deutsche Bank AG as underwriters, said two people, who asked not to be identified because the plans are private.
The offering is planned for the third quarter, and a filing may come as early as next week, one of the people said.
Delphi exited bankruptcy in October 2009, resulting in four classes of shares.
Lenders including private equity firms Elliott Management Corp. and Silver Point Capital LP bought most of the original Delphi and still hold a controlling interest after Delphi bought back stakes from former parent General Motors Co. and the Pension Benefit Guaranty Corp. in March.
While no decision has been made on the size of the stock offering as each investor weighs whether to participate or how much of their stock to sell in the deal, Delphi as a whole could be worth about $10 billion, a source told Reuters.
The IPO of Delphi -- still a major supplier for GM -- comes as the U.S. auto industry emerges from the punishing downturn of the late 2000s with sharply lower costs and higher profit potential.
U.S. auto sales totaled 13.17 million vehicles on a seasonally adjusted annualized rate in April, compared with sales of 10.4 million for all of 2009.
A group of creditors led by Silver Point and Elliott Management acquired Delphi in late 2009 by forgiving nearly $3.5 billion of bankruptcy loans it bought from previous bankruptcy lenders, and investing $900 million in capital in the Michigan company.
It was not immediately clear how much each investor would sell, but that bet appears to be paying off as the auto market has rebounded since the financial crisis. Delphi shed most of its liabilities and trimmed expenses during a four-year-long Chapter 11 restructuring.
The Chapter 11 filing in October 2005 was the biggest U.S. auto-related bankruptcy at the time.
"Our board and the market will ultimately determine the timing and the probability of an IPO and the Delphi team is focused on creating value for the company and its stakeholders," Delphi spokesman Lindsey Wiliams said in a statement. He declined to elaborate.
Delphi is also expected to secure a $1.25 billion revolving credit facility for future liquidity purposes, three sources said. The facility is being led by JPMorgan, they said.
Spokeswomen for Goldman, JPMorgan, Bank of America and Barclays declined to comment, and spokesmen for Deutsche Bank and Citigroup didn't return messages seeking comment.
Bloomberg News and Reuters contributed to this report.