DETROIT/ WASHINGTON (Ind. (Indiana's NewsCenter) - It's a big day on Wall Street, as General Motors goes public for the first time since declaring bankruptcy.
GM CEO, Dan Akerson rang the bell at the New York Stock Market Thursday morning.
It marked the trading of the first GM Stock since the automaker entered bankruptcy protection, 17-months-ago.
GM Stock quickly sold above the initial offering price of $33.
General Motors CEO Dan Akerson says, “I think the company is well positioned producing the best vehicles in the world, and we have a strong balance sheet, and a good operating model. Things are looking good for General Motors. But, I don't know what the market's going to do, if you tell me what the market's going to do, I might be able to make a good prognostication.”
And some good news for taxpayers as the federal government reduced its share of GM by "half" with today's initial public offering.
The automaker is expected to raise more than $23 billion from the sale and is estimated to be the largest in US history.
The company took a $50 billion government bailout and went through bankruptcy last year, then rebuilt itself by significantly cutting costs.
Harry Wilson with the GM Team says, “This is fundamentally a different company from what it was two years ago. The cost structure is radically lower. It used to be that General Motors would break even in the United States if it sold 4 million cars a year. Now they break even if they sell two million cars a year.”
The US Treasury is expected to make more than $13 billion from the sale, which would help significantly make up the balance from the taxpayer-funded bailout. Which is estimated to have "saved" nearly 1.5 million jobs.
GM closed the day at $34.19 a share.
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