With the clanging of the bell and the growl of a Chevrolet Camaro roaring to life (an excellent use of symbolism) accompanied by the applause of the company’s highest ranking officials within the walls of the New York Stock Exchange – General Motors has gone public once again.
Leading up to this very point, it has constantly been reported that The General’s stock would begin trading around the low to high $20’s. But when the bell sounded off and trading commenced – General Motors broke the $30 barrier, something many didn’t anticipate.
Given the symbol “GM” for the NYSE and “GMM” for the Toronto Stock Exchange, the total offering consists of 478 million common shares (up from the original 365 million). The offering is on track to raise up to $23.1 billion, if extra shares are sold. All of the increased demand could push the offering to be the largest in U.S. history by the end of the day.
As far as Federal ownership goes, the government plans on selling 400 million shares of its stake, reducing ownership from 61 percent to 33 percent by the end of the day. However, if the government plans on at least breaking even, shares would have to trade upwards of $50, according to some reports. Though that number is considered to be extremely high, it has never before seemed so attainable. Stay tuned to GM Authority – The Ultimate General Motors Enthusiast Site – for more coverage of the GM IPO.
Source: The Detroit Free Press