General Motors' IPO Nets Another $1.8 Billion for the U.S. Treasury

General Motors' (GM) initial public offering two weeks ago netted an additional $1.8 billion for the U.S. Treasury Department following the sale of additional stock, bringing the taxpayers' return from their investment in the once-bankrupt automaker to a total of $13.5 billion.

The Treasury, which invested nearly $50 billion in taxpayer money into the struggling automaker as part of its Troubled Asset Relief Program (TARP), said in a statement Thursday that it sold an additional 54 million in GM shares after the company exercised an over-allotment option for the stock. GM's IPO cut the Treasury's stake in the company to 33% from 61%.

GM, which emerged from bankruptcy last year, last month went public by selling 478 million common shares at $33 each, or about $15.8 billion in common stock. The automaker had increased the size of the IPO from the previously planned 365 million shares while boosting the price range from as little as $26 a share to as much as $33.

GM also said last month that its third-quarter net income was $2.2 billion, compared to a $571 million loss a year earlier. Revenue jumped 27% to $34.1 billion. Additionally, year-to-date sales for GM's four remaining brands through October increased 22% from a year earlier to 1.81 million units.

Last week, the Treasury Department said the IPO netted $11.7 billion from the 358.4 million shares initially sold in the offering.

GM proceeds account for more than 5% of the $252 billion companies have repaid to TARP. Earlier this week, a report released by the Congressional Budget Office said TARP will cost taxpayers about $25 billion, down from the $50 billion estimated in October.

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jkcow

770 million dollar bailout cost each man woman and child $2333.33. This means each family of four needs to pay over 9000.00 plus interest for the bailout. It seems that we should have put more thougth into this.

December 03 2010 at 10:02 AM Report abuse rate up rate down Reply
kv37

Dang... only 13.5 where's the rest of it?

December 02 2010 at 4:48 PM Report abuse +3 rate up rate down Reply
1 reply to kv37's comment
GARY

It's coming,GM what's more then anything to pay back government and get them and some tax payers off there back. The government will not let them open any closed plants, But put 3rd shifts on at open plants, 3 shifts is not good business, poor quility, No manintance on equipment to build the product, Need to open closed plant to fill order for back ordered Vehicals, Example Chevy Volt. first two years production is already sold out. OPEN SOME CLOSED PLANTS. YOU HAVE TO MAKE HAY WHILE THE SUN SHINES.

December 03 2010 at 10:45 AM Report abuse rate up rate down Reply