GM to return to NYSE after 18 months - KWWL - Eastern Iowa Breaking News, Weather, Closings

GM to return to NYSE after 18 months


DETROIT (KWWL) -- General Motors will return to the New York Stock Exchange for the first time since June of last year.

The company said Wednesday it would price its common stock at $33 per share in an initial public offering that could be worth $23.2 billion.

The sale will draw the U.S. government closer to its goal of recouping the $50 billion it gave GM to help it avoid financial ruin.

Demand for GM shares is so strong that the company's bankers are likely to exercise options to sell a maximum number of shares. That means 550 million common shares would be sold by the government and other GM owners starting Thursday for a total value of $18.2 billion.

The government will sell 412 million shares and get $13.6 billion. It will still have about 500 million shares, or about 33 percent of GM. It would have to sell them for $53 a share, or $26.4 billion, for taxpayers to get back their $50 billion back.

At $18.2 billion, the common share sale would be the fifth-largest IPO in history. GM will also sell up to 100 million shares of preferred stock worth a total of $5 billion. The preferred and common shares combined would make the IPO worth $23.2 billion, which could be the largest IPO in history.

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