GM IPO Raises $20 Billion Selling Common, Preferred

[Purveyor]

Source: Bloomberg

Nov. 17 (Bloomberg) -- General Motors Co. raised more than $20 billion selling common and preferred stock in an initial public offering that reduced the U.S. government to a minority shareholder.

GM’s owners, including the U.S. Treasury, sold at least $15.8 billion of common shares at $33 a share, making it the second-largest U.S. IPO on record after San Francisco-based Visa Inc.’s $19.7 billion sale in March 2008, a statement and data compiled by Bloomberg showed. An overallotment option and a sale of preferred shares may boost the total raised to $23.1 billion, more than the $22.1 billion sold by Agricultural Bank of China Ltd. in the largest IPO of common stock in history.

The offering came 16 months after GM emerged from bankruptcy and brings Chief Executive Officer Dan Akerson closer to his goal of returning the $49.5 billion the automaker received in a taxpayer bailout last year. The Treasury, which is taking a loss on its portion of the sale, will break even only if the shares climb more than 60 percent, Bloomberg data shows.

“It’s pretty hard to be anything but positive,” said Uri Landesman, who helps oversee about $500 million as president of New York-based hedge fund Platinum Partners LLP. The IPO “shows you that there are people who are very enthusiastic. People think that this is a viable company,” he said.

Read more: http://www.businessweek.com/news/2010-11-17/gm-ipo-raises-20-billion-selling-common-preferred.html

[James48]

1. Good luck GM

and thank you to the U.S. Government for saving GM from extinction.

Good luck GM on a bright future.

[Purveyor]

2. Hear, hear! I can't imagine how much worse the econ situation here in Michigan

would have been had GM and Chrysler been allowed to fold.

[MrTriumph]

3. With success like this, who needs failure?

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