The Trump administration is drafting plans to sell a minority stake in mortgage financiers Fannie Mae and Freddie Mac as soon as later this year, according to the Wall Street Journal and confirmed by senior officials cited by Bloomberg. The prospective initial public offering would float roughly 5% to 15% of the two government-sponsored enterprises and could raise about $30 billion, implying a combined market value of around $500 billion—potentially the largest IPO on record. The share sale would be a first step toward winding down the federal conservatorship imposed after the companies’ 2008 bailout, though the government would keep a controlling stake and, officials say, retain its credit backstop. Advisers are still weighing whether to list the entities separately or as a merged company, and no final decision has been made. News of the possible offering sent the thinly traded legacy shares of both firms to their highest closes since 2008. Hedge-fund manager Bill Ackman, a long-time investor in the companies, backed a merger proposal that he says could lower mortgage rates and streamline oversight. Analysts caution that key questions—including capital levels, future regulation and the status of the federal guarantee—must be resolved before any listing can proceed.