News
18 November 2010
By Chris Haak
Less than a year and a half after its predecessor, General Motors Corporation, collapsed under the crushing weight of declining sales and market share, unsustainable debt levels, and enormous labor costs, General Motors Company has completed its initial public offering. Starting this morning, you can hit up your broker for a few shares of GM (the company got its old ticker symbol back) and ride what may or may not be the company’s ascent toward business success.
The company sold 478 million shares yesterday, priced at $33 per share. That price was well above the original expected price range of up to $27 per share, and also at the top end of the revised $30-33 per share. The revised range, and the higher price, reflect considerable IPO demand for GM’s stock. On top of the 478 million shares, GM’s bankers were expected to also sell another 71.7 million shares as an “overallotment,” which is allowed when demand for shares is stronger than expected. The 478 million shares raised $15.774 billion, and the 71.7 million shares raised another $2.366 billion, for a total common stock sale of $18.14 billion.
Continue Reading