General Motors Has Orders For $60 Billion In Stock [REPORT]
On Thursday, General Motors CEO Dan Akerson is expected to ring the bell at the New York Stock Exchange for GM’s return to trading. This is happening about 17 months after their filing for bankruptcy protection. GM will trade under the symbol GM in New York and GMM in on the Toronto Stock Exchange.
GM had received a $50 billion bailout from the U.S. Treasury Department. The Treasure received a 61% stake as a result of the bail-out. General Motors plans to sell about $10 billion worth of common stock and $3 billion worth of preferred shares. This would make it the second-biggest U.S. IPO after Visa.
According to several sources, GM’s IPO has already received $60 billion worth of orders. There is also an “excess demand” of $3 billion worth of GM’s preferred shares. In order for U.S. taxpayers to break even, GM would need to reach a market value of about $70 billion.@amitchowdhry or on Google+ at +AmitChowdhry