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| GM shares jump after record public offering | GM shares jump after record public offering |
| (40 minutes later) | |
| Shares in General Motors (GM) have risen 7% on the first day of trading following the carmaker's record public share offering. | Shares in General Motors (GM) have risen 7% on the first day of trading following the carmaker's record public share offering. |
| Shares rose as high as $35.99 in early trade in New York, having been priced at $33 by the company. | Shares rose as high as $35.99 in early trade in New York, having been priced at $33 by the company. |
| GM raised $20.1bn (£12.6bn) through its offering, making it the largest share sale in the US to date. | GM raised $20.1bn (£12.6bn) through its offering, making it the largest share sale in the US to date. |
| President Obama called the sale a "major milestone" for both the company and the US car industry. | President Obama called the sale a "major milestone" for both the company and the US car industry. |
| The amount raised could rise to a world record $23.1bn if underwriters exercise an option to sell more shares. | The amount raised could rise to a world record $23.1bn if underwriters exercise an option to sell more shares. |
| Surprisingly strong investor demand had allowed the carmaker to lift the price of the shares on offer to $33 from the $26 it had initially hoped for. | Surprisingly strong investor demand had allowed the carmaker to lift the price of the shares on offer to $33 from the $26 it had initially hoped for. |
| GM is returning to the market after a $50bn government bail-out. | GM is returning to the market after a $50bn government bail-out. |
| Different ballpark | Different ballpark |
| The day's trading began on Wall Street when GM chief executive Dan Akerson rang the opening bell on the New York Stock Exchange. | The day's trading began on Wall Street when GM chief executive Dan Akerson rang the opening bell on the New York Stock Exchange. |
| This is a very bright start. | |
| The share offering is more ambitious than anyone expected, and the demand for stock seems overwhelming. | |
| Not bad for a company that almost went bankrupt 18 months ago. | |
| But there's still a long way to go if the taxpayers are to get all their money back. The bailout cost them $50bn. | |
| It's thought the government will have to sell its remaining stock at around $50 a share for several years to recoup its investment. | |
| But the bailout was never only about GM. The Obama administration argued that the entire American car industry, with all its associated businesses, was at stake. | |
| So far, the evidence suggests that something is working. | |
| A general revival does seem to be under way, at least in terms of the profitability and competitiveness of the companies involved. | |
| But the cost has been huge: tens of thousands of workers were laid off, plants closed, familiar brands ditched and auto dealers told to look for other work. | |
| And the bailout itself remains hugely controversial, with the administration's critics still seeing it as an unwarranted intrusion of big government into the free market. | |
| It's clearly in the interests of both GM and the White House for the nickname "Government Motors" to become a thing of the past. | |
| "There's a lot of work to do, but today is the beginning of the new company," said Mark Reuss, GM's North American president. | "There's a lot of work to do, but today is the beginning of the new company," said Mark Reuss, GM's North American president. |
| Government officials said the company's strong market debut showed they had made the right choice in rescuing the carmaker. | Government officials said the company's strong market debut showed they had made the right choice in rescuing the carmaker. |
| "This is a bit better than people had been projecting. As to a year ago, it's not even in the same ballpark," Ron Bloom, the Treasury official in charge of the GM investment told Reuters. | "This is a bit better than people had been projecting. As to a year ago, it's not even in the same ballpark," Ron Bloom, the Treasury official in charge of the GM investment told Reuters. |
| "A year ago, people said, 'You have no exit, you have no strategy. This company is not fixed.'" | "A year ago, people said, 'You have no exit, you have no strategy. This company is not fixed.'" |
| Back in profit | Back in profit |
| The carmaker has raised $20.1bn from the sale of the shares. However, an over-allotment option, which will be settled over the next 30 days, would add $3bn to that figure, taking GM beyond the $22.1bn raised by the Agricultural Bank of China's market launch. | The carmaker has raised $20.1bn from the sale of the shares. However, an over-allotment option, which will be settled over the next 30 days, would add $3bn to that figure, taking GM beyond the $22.1bn raised by the Agricultural Bank of China's market launch. |
| The share sale, known as an initial public offering (IPO), will allow the US government reduce its current 61% stake in the company to as low as 33%. | The share sale, known as an initial public offering (IPO), will allow the US government reduce its current 61% stake in the company to as low as 33%. |
| GM returned to profit this year for the first time since 2004. The company made $5bn during the first nine months of this year. | GM returned to profit this year for the first time since 2004. The company made $5bn during the first nine months of this year. |
| Scott Painter from the US car comparison site Truecar.com believes the IPO is a sign of how well the economic recovery is going. | Scott Painter from the US car comparison site Truecar.com believes the IPO is a sign of how well the economic recovery is going. |
| "I think GM having a strong IPO and pricing it at the high end of the range certainly speaks well of America and confidence in America, and GM is a really good indicator of everything that we've been through over the last couple of years and how the recovery is working out," he said. | "I think GM having a strong IPO and pricing it at the high end of the range certainly speaks well of America and confidence in America, and GM is a really good indicator of everything that we've been through over the last couple of years and how the recovery is working out," he said. |