When it makes its return as a publicly-traded company later this year, General Motors believes its stock could be worth as much as $25 a share.
In an interview with Reuters, GM Chairman Ed Whitacre said it’s “a little too early to tell” the exact share price after the planned initial public offering, but he expects it to be in the range of $20 to $25.
The comments from Whitacre, who stepped down as CEO earlier this year, are the first GM has made about the price of its likely IPO. He declined to comment on the size of the GM IPO.
“We'll have a successful IPO some time in November and it's going to work,” Whitacre told the wire service. “It's going to work and it was absolutely the right thing to save this company."
Whitacre also weighed in on the government’s role after rescuing the auto maker from bankruptcy during the recession. He said he would give the U.S. an “A-plus” for not interfering with GM’s management.
Whitacre, 68, explained his rationale for stepping down from his post ahead of the company’s return to the public markets.
"Had I stayed through the IPO, I would have had to stay a long time," Whitacre told Reuters. "Investors are going to buy the management of the company, as well as the cars they make. I was not prepared to stay another few years, so it is time for me to do it now."