Washington Post Staff
Thursday, November 18, 2010; 11:39 AM
The long anticipated GM IPO began this morning with stock prices above $35. As Jia Lynn Yang reported:
General Motors' stock has stayed steady Thursday morning at around $35 a share, after shooting up 6 percent minutes after chief executive Dan Akerson ran the opening bell at 9:30 a.m. using the horn blare of a 2011 Chevrolet Camaro SS.
The auto giant priced the stock at $33 a share in GM's milestone IPO. The scene earlier this morning appeared frenzied on the typically staid floor of the New York Stock Exchange, with underwriters and GM board members and executive all gathered for the landmark moment. There was a short delay after the opening bell for GM shares to actually begin trading.
As Steven Mufson explained the GM IPO could net over $20 billion:
Seventeen months after veering into bankruptcy, General Motors has become the unlikely darling of Wall Street, poised to complete an initial public offering Thursday that will fetch more than $20 billion and rank as one of the largest in history.
Stripped of laggard brands, costly health-care benefits and bulging debt, the shiny new GM has attracted investors that range from former employees to Chinese auto giant SAIC to big pension funds that only recently lost money on the old GM.
As Michelle Singeltary reported, the GM IPO is a sign of the company's recovery, but one which has drawbacks for investors:
Investors who are holding the old GM stock are probably not so elated. Their shares are nearly worthless, except to those who sell them to lock in their losses for tax-deduction purposes. If you are still holding GM shares issued before the company filed for Chapter 11 protection in June 2009, so sorry, but you lose. You are not entitled to receive the newly issued shares in exchange.
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