Thursday, November 18, 2010

GM Shares Hitting the Market

General Motors revived itself as a publicly traded corporation Thursday, offering $23 billion in new shares  as the U.S. government sold its majority stake in the automaker that it had acquired as part of last year's bailout.
About a year and a half ago, GM filed for bankruptcy protection. Now, it has pared its debt, shed some brands and become more fiscally efficient and focused on core products. 
Its IPO is one of the largest in history. 
The federal government now holds only about a third of the company. 
GM priced its common shares at $33 amid high investor demand. When the government and other owners sell their shares, they will raise $18.2 billion. GM will raise $5 billion by selling 100 million preferred shares at $50 each.

No comments: