GM Raises IPO To $33 A Share
"All of us at GM are excited about this historic milestone," said GM Chief Financial Officer Chris Liddell in a statement announcing the pricing. "We are especially appreciative of those who stood by us through the toughest times."
On Tuesday, GM raised the price of its shares to around $32 or $33. That’s a major increase over the original price of $26 to $29. GM announced that it would sell 31% more than it had originally estimated.
The U.S Treasure should get around $11.8 billion, as it has held a 61% stake in the company since July of 2009. The taxpayers stake in the company will fall to around 33% of the common stock following the sale.
So, this means that between what GM has already paid back, the IPO and the repurchase of the shares held by the Treasury, GM will have paid back $22 billion of the bailout.
The current pricing would give GM a value of $49.5 billion and compared to Ford’s $58 billion, GM is a bit lagging. That being said, the value is slated rise as the share price climbs and as shareholders buy up more.
There might be a total of $23.1 billion worth of shares sold on Thursday.