GM files for IPO

General Motors has filed for its initial public offering (IPO) after posting significant gains for consecutive financial quarters.

The Detroit automaker has announced that it will go public after its much-publicized bankruptcy and bailout. An IPO involves a company selling its shares to the public. Because the U.S. government currently owns 61 percent of the company, this means that taxpayers will be partially or fully reimbursed for the government’s decision to bail out GM.

The company has engineered a remarkable turnaround, jettisoning unprofitable brands like Pontiac, Saab, Saturn and Hummer in an effort to become profitable again. They have largely succeeded, with the company posting billion-dollar profits in multiple consecutive quarters.

The company also plans to rejuvenate its lineups with new vehicles, like the upcoming Chevy Cruze and Volt.

Investors will ultimately decide whether taxpayers recoup the $43 billion that the government poured into the company’s equity. For that to happen, the company would need to be valued at nearly $70 billion. If Wall Street considers it worth more, then America could actually end up profiting off the bailout.

GM recently completed the purchase of bad credit car loan lender AmeriCredit, which analysts expect may begin lending again in the near future.ADNFCR-3500-ID-19928523-ADNFCR