General Motors launched its IPO yesterday, providing another chapter in what has become an extraordinary turnaround story. The offering sold more than $15 billion worth of common stock, the second-biggest IPO on record (the biggest was for Visa Inc., two years ago). That's about 50 percent more than GM had anticipated when it first announced the offering.
GM, you'll recall, filed for bankruptcy on June 1, 2009. At that time, the existing shareholders were wiped out, and the new owners became:
The U.S. government: 60.8 percent
The United Auto Workers: 17.5 percent
The Canadian government: 11 percent
Unsecured bondholders: 10 percent
For the shares it sold yesterday, the U.S. Treasury received about $13 billion - but the total amount it invested in GM was nearly $50 billion. To make all its money back, the Treasury will have to sell the rest of its GM shares at about $53 each.
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