GM IPO: Open to All Investors

There have been some questions over the past few weeks about whether the General Motors IPO would be open to any and all investors or whether there might be some restrictions on money put into the shares from investors overseas. GM made it clear, recently, that the U.S. Treasury would hold some of its share indefinitely as opposed to disposing of them as soon after the IPO as possible. That means the government will be a long-term investor, presumably with a long-term say in the future ownership make-up of the company

The Treasury Department said late on September 17th that "We expect that potential investors will be sought across multiple geographies with a focus on North American investors, in line with what is typical in similar transactions."

The Treasury wants to lower the 61% of GM that it owns on behalf of American taxpayers. The growth of the car industry is not as robust as it was earlier this year. The people at the Treasury may think "the more the merrier." At least a large number of investors could cause a surge of interest at the IPO which, perhaps, could be sustained.

Increase your money and finance knowledge from home

Behavioral Finance

Why do investors make the decisions that they do?

View Course »

What Is Your Risk Tolerance?

Answer the question "What type of investor am I?".

View Course »

Add a Comment

*0 / 3000 Character Maximum

108 Comments

Filter by:
jajefmly

At a current 61% ownership ....who is at the helm of the "New" General Motors. The Treasury Bonds only pay pennies. What do you think the dividend return on the IPO will be? I would think an IPO shouldn't even be considered till the taxpayers are paid back with interest. What about the all the old GM shares of stock?

September 19 2010 at 9:21 AM Report abuse rate up rate down Reply
bigbill956

GM was still selling lots of cars compared to it's competition. The problem with GM was that it has been building cars in this country for a long time and the transplant companies had just started. Because of this if you count all of the GM retirees and there spouses, widows, and dependent children it added up to almost 600,000 while the transplant companies have almost none. The cost of health care for those 600,000 was overwhelming.

September 19 2010 at 9:04 AM Report abuse +1 rate up rate down Reply
1 reply to bigbill956's comment
ssnoopy55

The transplants hasn't benn around as long as GM. We have worked long and hard for GM and all the people that has now retired deserves to be able to live out the rest of their lives with their pensions. We were here before the transplants. They are the ones that needs to keep out of this country so we americans will still have a job. If they allow the Foreners to continue coming into this country and bringing their jobs with them we won't be able to call this country our own. We all need to start buying everything American and if we don't have it then we need to start making it. And that is 100 percent the trueth. Whoever says otherwise, well, they just don't know ant better.

September 19 2010 at 12:39 PM Report abuse rate up rate down Reply
jhooperaa

Can the GM bondholders who got screwed by Obama when the government took over buy stock too? Bondholders legally should have gotten thier money but Obama had to pay off the UAW. DO NOT BUY GM STOCK. Anything Obama touches will turn to crap eventually.

September 19 2010 at 8:22 AM Report abuse +2 rate up rate down Reply
3 replies to jhooperaa's comment
BERNIE/LOIS

The union destroyed the old GM, and now the politicians want some of the easy money. How about a new auto called the Obamabile, it gets a 100 miles to the gallon and it runs on hot air.

September 19 2010 at 8:10 AM Report abuse +2 rate up rate down Reply
1 reply to BERNIE/LOIS's comment
jayi797904

check out facts union dident destroy gm top brass of gm destroyed their own company. At the expense of its work force. I dont know many companies that give big bonuses to their top executives while closing plants and putting thousands out of work. Oh and gm did have an electric car prior that never sold well. You can make cars that people dont want. get your facts strait.

September 19 2010 at 8:57 AM Report abuse +1 rate up rate down Reply
PAT AND SHARON

What about people who previously owned GM stock and lost every penny. Will they ever see any of the money they lost? I realize it's a new company, but they are selling the same cars.

September 19 2010 at 8:02 AM Report abuse +2 rate up rate down Reply
1 reply to PAT AND SHARON's comment
flrooster1

Pat and Sharon when GM's Stock went "Belly Up" you lost Any value you may have had in any shares in the company, it's the nature of the beast, it's not protected by the FDIC , if you gamble with stocks and loss it all, that's just the way the game is played, if you want to lose even more money just buy more GM stock when it is available to the public already sales down 27% and not looking good, I'm staying out. I also had a large portfolio of GM stock before they crashed, and if i had a all the certificates it would make good toilet paper..Richard in Florida

September 19 2010 at 8:20 AM Report abuse +1 rate up rate down Reply
toosmart4u

The new CEO of GM is a republican. He personally donated over $30,000 to the GOP in the last election.

September 19 2010 at 7:22 AM Report abuse rate up rate down Reply
1 reply to toosmart4u's comment
jhooperaa

WHO CARESSSSSSSSSSSSSSSSSSSSSSSSS

September 19 2010 at 8:23 AM Report abuse rate up rate down Reply
Mark

Any and all investors we are already the majority owner........61% They have no choice but to accept any and all investors. They would probably let Bin Laden to but stock in this government boondogle........

September 19 2010 at 5:23 AM Report abuse +3 rate up rate down Reply
floatgod

Good night fans, looks like JOWL has conveniently decided to go to bed.

September 18 2010 at 11:38 PM Report abuse rate up rate down Reply
floatgod

"Floatgod you must live in Japan. You have not written one thing that is the truth. Its easy to look things up and find out you lie." Well JOWL, I posted my lies in detail below. You have called me a liar, and I have posted just a few of my examples of Democrats in Michigan and in Washington that are giving STIMULUS money and tax incentives to Korea and Germany. What say you now?

September 18 2010 at 10:58 PM Report abuse +3 rate up rate down Reply
rwdvddndcrw

stupid govt., they should wait to unload, 2 reasons. the stock will start out over bought, sell from the highpoint down to the opening bid, then it will over sell, which shortly will correct itself, and if quartely news supports it by that time will start a genuine upward trend that the govt. can sell as much as they got left for a premium to offset the burdens of the taxpayers.

September 18 2010 at 10:12 PM Report abuse +2 rate up rate down Reply
1 reply to rwdvddndcrw's comment
lswblk

I feel that this is one of the worst times for an investor to enter "the" new GM IPO. Yes, GM will prosper along with the government (if they get some "TARP" money paid back), but the investor will be stuck with losses.

September 18 2010 at 10:28 PM Report abuse +1 rate up rate down Reply