Back in August we reported that General Motors (GM) was going to file for IPO, and as a result the U.S. government was to reduce its stake in the company. We now have reports that GM is to up its stock offering by more than 30 percent, which works out to $15.5 billion.
The offer could go through today, which would then see the new stock start trading tomorrow. Business and Leadership said that if the IPO is allowed to go ahead, then it would become the biggest deal of its kind in the U.S. Demand has been high by General Motors investors, which is why the shares need to be boosted by 478 million.
According to the report there was believed to be $70 billion worth of orders, if this is true then this could raise almost $23 billion in revenue. If this were the case, then the US Treasury’s stake would be dramatically reduced, which would certainly please the taxpayer.
If the price of shares stays at the $33 figure, then this could help rasie $15 billion for the Treasury, something that could help to pay back debt or go towards their defense budget. Do you think that Ford needs to worry about invenstors walking away and taking their money to GM?