GM Stock price shoots up after IPO today

Thursday, February 14th, 2013 By

NYSE

The New York Stock Exchange hosted the General Motors return IPO today. Image: Wikimedia Commons

Just 17 months after the company’s bankruptcy, General Motors had a new initial public offering. The GM stock was offered at $33 a share, and the GM stock price has been steadily rising. The U.S. Government has sold half of its preferred stock in GM, raising about $23 billion.

GM initial public offering

The GM IPO this morning comes after a very rough road for the company. One year and five months after going into bankruptcy and receiving $50 billion from federal taxpayers, GM was able to go public again. On the New York Stock Exchange, General Motors (stock symbol GM), was offered at $33. The CEO of GM got to open the trading day at the NYSE, ringing the opening bell with a 2011 Camaro SS horn blast.

The GM stock price

Right after opening, the GM stock price rose to about $35. Depending on how today goes, this could very well be the largest initial public offering in the history of the New York Stock Exchange. GM originally planned on offering only about $20.1 billion worth of stock today. However, there is a possibility that the size of the initial public offering of GM stock could be expanded by as much as $3 billion. If the GM IPO reaches $23.1 billion in value, it will break the record set in July by the Agricultural Bank of China.

Will GM IPO benefit taxpayers?

The U.S. Treasury has chosen to sell half of its stake in the company. At $33 a share, the GM stock raised about $23 billion for the Treasury. While not quite half of the investment taxpayers made in the company, it is a start. The government would have to sell the remaining half of its stock at $53 per share in order to make up the rest of the investment. Only about 5 percent of the shares are actually being sold to “regular Joe” investors, which is standard for most initial public offerings.

Sources

GM Website
Washington Post

Previous Article

« First Time Home Buyer Tax Credit Not Just for First-Timers

If the proposal is approved, the first time home buyer tax credit would be extended to April 2010, to people who make more and who have already owned houses... Do you think the tax credit will stimulate home sales?
Next Article

Short Term Loans – Expanding Scope During Financial Distress »

Borrow Up To $1,500 With No Credit Checks or Faxing Required. Cash Deposit in two Hours. Online Application Takes 2.5 Minutes. APPLY HERE! This is without a doubt what people feel when they apply for short term loans. Please note that your personal experience may be different. (Photo: flickr.com)

Leave a Reply

Other recent posts by bryanh

Understand Your Retirement-Plan Choices

Understanding your options when it comes to retirement plans enables you to make wise investments…

Consumers In Search of Debt Relief Need to Stop Being Lazy

Debt relief can be found in consumer’s lives, but they have to stop being lazy and become proactive about it...

Get instant cash until payday

Whether it's a past-due bill, a forgotten anniversary or an empty gas tank, when you need quick cash, an online loan is a quick solution...
Construction worker in need of some cash until payday.