General Motors' (GM) initial public offering two weeks ago netted an additional $1.8 billion for the U.S. Treasury Department following the sale of additional stock, bringing the taxpayers' return from their investment in the once-bankrupt automaker to a total of $13.5 billion.
The Treasury, which invested nearly $50 billion in taxpayer money into the struggling automaker as part of its Troubled Asset Relief Program (TARP), said in a statement Thursday that it sold an additional 54 million in GM shares after the company exercised an over-allotment option for the stock. GM's IPO cut the Treasury's stake in the company to 33% from 61%.
GM, which emerged from bankruptcy last year, last month went public by selling 478 million common shares at $33 each, or about $15.8 billion in common stock. The automaker had increased the size of the IPO from the previously planned 365 million shares while boosting the price range from as little as $26 a share to as much as $33.
GM also said last month that its third-quarter net income was $2.2 billion, compared to a $571 million loss a year earlier. Revenue jumped 27% to $34.1 billion. Additionally, year-to-date sales for GM's four remaining brands through October increased 22% from a year earlier to 1.81 million units.
Last week, the Treasury Department said the IPO netted $11.7 billion from the 358.4 million shares initially sold in the offering.
GM proceeds account for more than 5% of the $252 billion companies have repaid to TARP. Earlier this week, a report released by the Congressional Budget Office said TARP will cost taxpayers about $25 billion, down from the $50 billion estimated in October.