Review Car

GM Stock Sale Starts Today

General Motors will once again become a public company. This is all due to their public offering of stock that is estimated to be worth around $23 million. This action will no longer have the government as the main stockholder of GM, which many are believing is a great point in the goal of revitalizing the economy.

When the shares do start their sharing, the US government stands to make around $13.6 million, while reducing their share of the company from 61% to 33%. 

This share offering could be the biggest in history overall, and is going to be the biggest in GM history. The common stock is set to go at a price of $33 per stock, while the preferred stocks are set to sell at around $50 per stock. 

In June of 2009, after GM declared bankruptcy and was rescued by the government, their stock plummeted and was completely wiped out. While also getting the nickname of 'Government Motors'. Needless to say, this was not the image that GM wanted to forecast to the rest of the automotive industry. But after today, all this could change. 

Most of the stock is expected to go to institutional investors, with a small percentage going to smaller investors, this is due to the institutional investors receiving more perks from Wall Street. However, 5% of the stock is being set aside for employees, car dealers and retirees. October 22nd was the deadline for people to sign up to receive this stock, however GM has not revealed just how many people that they had partake on the deal. 

Many people are still concerned that the government still holds the majority of stake in the company. However, GM is hopeful that this IPO will help them in the long run. The company has already reported that they are making around $2000 per vehicle, which is a huge increase when compared to when they declared bankruptcy and were losing around $4000 per vehicle.