GM to offer largest ever IPO in U.S. history
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"I believe the price of GM will be on the rising track in the long run thanks to its strong ability in new-car designing and large presence in the fast-growing emerging market," said Robert Stutz, managing director with Chicago's investment bank Kinsella Group.
Most of proceeds from the share offering will go to the U.S. government, which owns 61 percent of GM after restructuring the company in bankruptcy court in 2009. The government earlier planned to reduce its share to 43 percent without overallotment.
Badly shattered by the financial crisis, GM filed for Chapter 11 bankruptcy protection on June 1, 2009 and the U.S. government pipelined 49.5 billion dollars to the company, in exchange for a 61-percent stake and 2.1 billion dollars of preferred stocks.
But now, the reborn GM earlier reported 4 billion dollars of net profit in the first three quarters this year and sold 2 million vehicles in the fastest-growing China market in the period from January to November. Besides, the automaker has returned 9.5 billion dollars to the government, which seeks to recoup the rest in the next couple of years.
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