GM IPO in Effect
The huge size of the public offering made President Barack Obama call the move a major milestone for the US automotive industry. In his view, the company's listing is a good sign not only for the carmaker itself, but for the industry as a whole.
"General Motors' initial public offering (IPO) marks a major milestone in the turnaround of not just an iconic company, but the entire American auto industry," the President said in a statement. “Through the IPO, the government will cut its stake in GM by nearly half, continuing our disciplined commitment to exit this investment while protecting the American taxpayer."
The value of the offering has been evaluated by GM at $20.1 billion or $23.1 billion if the underwriters’ over-allotment options are fully exercised. GM sent on the market 478 million shares of common stock (total value of $15.77 billion, $33.00 per share) and 87 million shares of mandatory convertible junior preferred stock (total of $4.35 billion).
“As we prepare to enter the equity markets, all of us at GM are excited about this historic milestone. We are especially appreciative of those who stood by us through the toughest times, and we are dedicated to creating value for all of our stakeholders,” said GM CFO Chris Liddell.