GM edges 3.6 percent higher on debut in Wall Street
- Source: Xinhua
- [10:22 November 19 2010]
- Comments
General Motors Co. CEO Dan Akerson (4th R, front) smiles while ringing the opening bell in celebration of the company's initial public offering at the New York Stock Exchange, on Nov. 18, 2010. General Motors Co. returned to Wall Street on Thursday after it filed for bankruptcy protection 18 months ago. Shares of GM opened about 7 percent higher above its IPO price of $33 on the New York Stock Exchange. Photo: Xinhua
General Motors Co.'s stock Thursday hiked 3.6 percent higher on its debut in Wall Street to settle at 34.19 dollars, sweeping concerns that the shares had been priced too high.
The stock opened at $35 on the New York Stock Exchange, six percent higher than from its initial public offering price of $33, and touched the highest $35.99.
In a speech this afternoon, Obama also touted GM's first day of trading as a public company. GM offered 478 million common shares in IPO, which will go to GM's current owners, including the US government and the United Auto Workers union.
Obama administration officials said that US Treasury sold 358 million GM shares in the IPO, which amounted to $11.8 billion at $33 per share.
As a result, the Treasury reduced its stake to 37 percent and could go as low as 26 percent if the overallotment and warrants are exercised. It expects to further cut its ownership in the future.
Underpinned by GM's jump, the S&P 500 rose 18, or 1.5 percent, to 1,197 and the Nasdaq gained 38, or 1.6 percent, to 2,514.
