General Motors IPO Hits Record-Making 20.1 Billion Shares Sold

General Motors IPO Hits Record-Making 20.1 Billion Shares Sold

DETROIT, M.I. General Motors IPO was an instant success with the public even after GM announced the price of common stock would increase. Original projected numbers included a total amount of $13 billion for the IPO. The final amount blew that number away and replaced it with a historic record instead.

General Motors sold 478 million common shares at $33 each, raising $15.77 billion. For the preferred stock, GM had planned on selling $4 billion and instead sold $4.35 billion. This brings the total to $20.1 billion, or $7.1 billion more than projected.

What's more, General Motors is looking to raise a total of $23.1 billion, according to the automaker. Underwriters have a 30-day option to purchase up to 71.7 million additional shares of common stock from the selling stockholders which would add $2.37 billion to the already impressive amount, along with an additional 13 million shares of mandatory convertible junior preferred stock for a total of $650 million. General Motors IPO could be the biggest initial public offering ever in U.S. history. If all available shares are sold, the U.S. government's stake in GM will drop to about 33 percent from 61 percent.

"As we prepare to enter the equity markets, all of us at GM are excited about this historic milestone. We are especially appreciative of those who stood by us through the toughest times, and we are dedicated to creating value for all of our stakeholders," said GM Vice Chairman and Chief Financial Officer Chris Liddell in a GM press release.

Today General Motors, led by Chief Executive Officer Dan Akerson, celebrated the historic occasion as Akserson rang The Opening Bell at the New York Stock Exchange. At the same time, the sound of the 2011Chevrolet Camaro SSmodel engine was heard revving to coincide with the opening of the NYSE market.

Also to the public's delight, General Motors displayed a line-up of some of its newest models outside of the NYSE building. The models included Chevrolet Volt, recently named the Motor Trend Magazine 2011 Car of the Year; Cruze and Camaro convertible; Cadillac CTS-V coupe and GMC Sierra HD.

[Sourcs(s): Reuters, General Motors News]

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