GM Shares Climb Higher on First Day of Trading
GM's initial public offering is set to become the biggest global IPO ever. The carmaker sold about 478 million shares Wednesday at $33 each, raising $20.1 billion. Including an option that would allow underwriters to sell more shares, GM looks set to raise $23.1 billion.
The IPO values GM at about $63 billion.
The offering was priced well above the earlier anticipated range of $26 to $29. The company has recently reported earnings of $2 billion on sales of $34 billion, as well as a strong balance sheet, with strong cash flow. With its remarkable comeback, GM shares may be on track to continue trading higher, although concerns remain and investors will be hard pressed to forget its problems of the past few years and the many hurdles still ahead.