traders GM IPOFor the first time since June 2009, shares in General Motors (GM) have begun trading on the New York Stock Exchange, opening Thursday at $35. In early morning trading, the Detroit automaker's shares continued to drive higher, up over 8% at one point.

GM's initial public offering is set to become the biggest global IPO ever. The carmaker sold about 478 million shares Wednesday at $33 each, raising $20.1 billion. Including an option that would allow underwriters to sell more shares, GM looks set to raise $23.1 billion.

The IPO values GM at about $63 billion.


The sale of stock will effectively reduce the U.S. government's stake in the company to around 40% from the current 61%, allowing GM to start shedding the embarrassing "Government Motors" nickname and accompanying stigma. The government acquired its stake as part of the bankruptcy process GM agreed to last year. The government poured nearly $50 billion into GM and after the IPO, taxpayers are still owed nearly $10 billion.

The offering was priced well above the earlier anticipated range of $26 to $29. The company has recently reported earnings of $2 billion on sales of $34 billion, as well as a strong balance sheet, with strong cash flow. With its remarkable comeback, GM shares may be on track to continue trading higher, although concerns remain and investors will be hard pressed to forget its problems of the past few years and the many hurdles still ahead.

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edbobbymarc

Yes, let's all celebrate that GM, the govt and the unions came out of this making billions - while millions of Americans who held stock, individually and in their pension plans, were screwed when the company declared "bankruptcy"! How about all the Seniors who had their savings whiped out by believing in this "All American Company"? Guess too big to fail doesn't apply to them. How about Preferred GM stock holders - cautious "income" investors-- who invested with the guarantee that, god forbid the company went under (always take that risk when investing), that they get paid first in the event of bankruptcy. Instead the govt paid the UNIONS first and all the stockholders got zero. Exactly when did it become legal to disregard a contract? The law says a contract is a contract. Not anymore - this fight went all the way to the Supreme Court and the radically liberal Ruth Bader Ginsberg obliterated that concept. Wonder how many lawsuits will use this ruling as a precident, set by the supreme court, that makes any contract or guarantee null and void. Hmm... if push came to shove, wonder if that ruling would extend our FDIC insured money...

November 18 2010 at 7:32 PM Report abuse +1 rate up rate down Reply
Michael

P.S And don't tell me they were all "DOT COM" I.P.O.'s. G.M. is nothing more than a "DOT.COM" equal employer.

November 18 2010 at 6:52 PM Report abuse +1 rate up rate down Reply
Michael

I never owned any G.M. [thank God], and only a moron of epic proportions would buy this stock now. The only people who will make money here are the brokers that got it at what, 33% less the 33.00 opening and then they'll unload when it goes up a point or two if not sooner. How soon many forget what the "insiders" did with all those I.P.O.'s 10 years ago.

November 18 2010 at 6:50 PM Report abuse +2 rate up rate down Reply
ahcrod

Just got latest issue of Consumer Reports; all GM cars were rated in the 0% to minus 30% in the reliability ratings. Also stated that ALL Cadillac models were below average in this rating last year. And I was looking at CTS; not any more.

November 18 2010 at 6:03 PM Report abuse +1 rate up rate down Reply
shipfixr

Wonder how many of the members of congress that voted to bail GM out are sitting on a pile of GM stock right now?? Wonder how that happened.

November 18 2010 at 6:03 PM Report abuse rate up rate down Reply
mclockhart

How does selling 478 million shares at $33 per share net out $20.1 billion? Must be some of that new government math that gives us all those less than accurate statistics the media tends to report without questionning. And, I think the people are still owed more than $10 billion on their GM investment....can we get a fact checker at this blog, pronto?

November 18 2010 at 5:16 PM Report abuse +1 rate up rate down Reply
renaldo1949

the stupidity of some people amazes me. you rant and rave about gm getting tax dollars. time to get over it. it happened. you will never buy a gm product. you want gm to fail. listen up morons. we, the taxpayers still own a big part of gm. we have gotten back almost half the buyout money. there is chance we will get it all back. but only if gm stays in business and is profitable. i would think any relatively intelligent person would like to get their money back. the more cars gm sells, the better chance we will get our money back.

November 18 2010 at 3:47 PM Report abuse rate up rate down Reply
recoater

to the deano's in the world im not rich but im no theif a person has the right to make money and use it as the person has reason it not the govt right to take it at will and waste it

November 18 2010 at 3:37 PM Report abuse +1 rate up rate down Reply
stevemontani

let's see Govt. takes over company to payoff political debt to the unions, screws all of the widows and children also known as former bond and stock holders out of their life savings then has an IPO of the new GM to generate money to fund the union pensions.........hmmmmm, a very sound investment.

November 18 2010 at 1:18 PM Report abuse +3 rate up rate down Reply
GMC SYCLONE

Things were not as simple as having G.M. just declaring bankruptcy. There were a whole lot of other factors that had to be taken into consideration. If G.M. went under it would have not only had a tremendous impact on our economy, but also the world. I am happy that the government helped the company out. While I do have relatives that lost money from it, I understand the ramifications of the company going belly-up, and when you buy stock that is a chance you take. Sometimes you get rich, sometimes you don't. I guess the lesson is don't put all your eggs in one basket and diversify your portfolios.

November 18 2010 at 12:54 PM Report abuse +1 rate up rate down Reply
1 reply to GMC SYCLONE's comment
emhcgreg

when you buy a sock you take your chances, however a govt forced backruptcy that burns the bondholder in first position and favors an over paid union pension as a reward is not a free market function, its a bad omen for any "private" company and all the rest of us....

November 18 2010 at 4:47 PM Report abuse rate up rate down Reply