RBC Dominion Securities is the sole Canadian content in the group of banks running the General Motors Corp. initial public offering.
It's not exactly an exclusive club, with 10 banks as bookrunners, but membership is coveted nonetheless. RBC has the biggest distribution network of any Canadian bank, with the largest sales force both for institutions and retail investors. It is also a lender now to GM, which helped solidify the deal.
It's a prestige position on what is expected to be the second-largest IPO in U.S. history. The fees, however, are going to be smaller than some banks would like, with the U.S. Treasury, which controls GM, only paying 0.75 per cent rather than the 3 per cent that is more standard. (Apparently it's Goldman Sachs' fault -- read that story here.)
The timing of the IPO isn't clear, but look for late September or October, in time to get it done before the U.S. midterm elections in November.Report Typo/Error