GM stock price closes at $34.19 following IPO, U.S. Treasury reduced its stake from 61% to 33%.
GM stock price with moderate IPO results. The much anticipated stock price and GM IPO was luke warm today, but a success. It closed at $34.19 after much speculation that it could reach $40 per share.
However, the U.S. Treasury was hoping the stock price wouldn’t rise too much on the first day so it can avoid complaints that it should have asked more for its shares.
GM sold at least 478 million common shares and were expected to sell 15% more, just 16 months after the automaker emerged from its 40-day government-funded bankruptcy. In its restructuring, GM lowered its break-even point, closed plants, and retired four U.S. car brands. The company survived on $49.5 billion from the U.S. government and $8.6 billion from Canadian governments.
“We’ll never forget that support,” CEO Dan Akerson told reporters on a conference call. “We know how we arrived here. We know what went wrong, and I believe we’ve learned a lot from that.” In addition, the U.S. Treasury reduced its stake from 61% to 33%.
The UAW health-care trust and Canadian governments also participated in the stock sale. GM also sold at least 87 million Series B preferred shares worth at least $4.4 billion. Most of the proceeds will go toward GM’s underfunded U.S. pension plans.