GM Shares Up Around 8% |
| Wall Street Journal - Nov 18, 2010 |
General Motors Co.'s stock opened 6% higher on its debut Thursday, vanquishing any fears that the shares had been priced too high.
The stock opened at $35 on the New York Stock Exchange, up from its initial public offering price of $33, and traded slightly higher in its first 10 minutes of trading. It was later changing hands at $35.28, up 6.9%.
The company sold more shares than expected at a higher price than originally planned, causing some concern that any first-day gains might be sucked out of the deal.
Underwriters had aimed to keep GM's first day pop around the 10% level, give or take two percentage points. Though most IPOs aim for a larger gain than that, there was concern that GM's largest owner, the U.S. government, would be leaving money on the table if the stock soared too high.
The $18.1 billion IPO is its biggest step yet away from being owned by the government, which rescued the auto maker and became its largest shareholder with last year's government bailout. The offering will reduce U.S. Treasury's stake from 61% to around 26%.
Read Full Article from Wall Street Journal
- Posted: 2010-11-18 08:39:11
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