in

GM IPO Stock: $33 Per Share, $20.1 billion

We reported earlier that General Motors (GM) wanted to increase its preferred stock by 30 percent, this would have worked out to $15.5 billion. However, the underwriters agreed to increase the size to $4.4 billion. The IPO now stands at $33 per share, which is expected to raise $20.1 billion.

The Wall Street underwriters finally set the price on 478 million GM common shares. If bankers decide to sell more securities, then this could increase common shares by another 71.7 million. Most of the income earned by this IPO will go to the U.S. Treasury, as it was their money that helped bail out the Detroit automaker.

Currently the treasury owns 61 percent of GM, so both parties are eager to dramatically reduce this. According to a WSJ article General Motors has already given back $9.5 billion, that’s a long way of the $49.5 billion that was given to them, which had stopped them from going bankrupt.

GM has been in close contact with the Obama administration, briefing them all the time about what they plan to do to pay back the rest of the funds. It is no secret that this is an issue that needs to be resolved, but at least the automaker has been paying back some of the money, and plans to pay the loan in full in the not to distant future.

Written by Peter Chubb

Peter has been writing on Product-Reviews since 2007 and in that time much has changed for him, like his hair having more grey than brown now. He loves gadgets and cars, and gets excited when big events come up, such as CES and the big auto shows.

Contact Peter Chubb: peter@product-reviews.net

He started out working in a factory and dreamed of the day when he could become his own boss; That happened back in 2002 and he has never looked back since. Things have changed so much on the Internet in that time, but he has adapted well.

Contact Peter Chubb: peter@product-reviews.net

Comments

Loading…

Gran Turismo 5: Installation Takes 40mins; Size is 6.4GB

Call of Duty: Black Ops – Download the Configuration Utility