Today marks the second Initial Public Offering of General Motors stock. This is less than a year and a half after the business originally filed for bankruptcy. The GM share was offered at $33 a share, and the General Motors share price has been steadily rising. Half of the share held by the US Treasury has been sold during this IPO. This brought in about $23 of the $50 billion the govt initially pumped into the business.
The initial public offering for General Motors
The GM IPO this morning comes after a very rough road for the company. Federal taxpayers paid $50 billion for General Motors to obtain out of its bankruptcy. Now, the business gets to go public again after one year and five months. The New York Share Exchange had General Motors stock, or General Motor share, for sale. $33 a share was the price. The General Motors CEO was able to ring the opening bell with a 2011 Camaro SS horn blast in order to start trading at the NYSE.
Exactly what General Motors share went to
General Motors share went up to $35 after it opened. Depending on how today goes, this could very well be the largest ipo within the history of the New York Stock Exchange. GM initially prepared on offering merely about $20.1 billion worth of share today. There is a chance that there could be more within the initial public offering than that though. There could be a $3 billion expansion. If the GM IPO reaches $23.1 billion in value, it will break the record set in July by the Agricultural Financial institution of China.
General Motors IPO correlates with tax payers a little
The U.S. Treasury has chosen to sell half of its stake within the company. The Treasury got about $23 billion from General Motors share at $33 a share. Working class individuals are not getting what was paid for it yet. It will be just the start of this though. The govt would have to sell the remaining half of its share at $53 per share in order to make up the rest of the investment. Only about 5 percent of the shares are actually being sold to “regular Joe” investors, which is standard for most initial public offerings.
Info from
GM
gm.com/investors/
Washington Post
washingtonpost.com/wp-dyn/content/article/2010/11/17/AR2010111707295.html?hpid=topnews&sid=ST2010111706620
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