General Motors Co., which went bankrupt last year after nearly a century in the New York Stock Exchange, rose to 9.1 percent in sexually transmitted infections after the return to public trading in 20 billion U.S. dollars offer Initial public.
GM gained 7.5 percent to $ 35.46 at 10:08 am, after climbing as high as $ 35.99. The owners of the automaker, including the U.S. Treasury sold 15.8 billion U.S. dollars of common stock at $ 33 each yesterday in the U.S. IPO second largest in history. Company's offer of $ 4.35 billion of preferred stock and May over-allotment option to increase the total to $ 23.1 billion, up from 22.1 billion U.S. dollars raised by Beijing-based Agricultural Bank China Ltd., the biggest initial public offering of shares of the story.
GM provides the flesh of the 16 months after it emerges from bankruptcy and brings back CEO Dan Akerson closer to the historical target of 49.5 billion in the automaker received a taxpayer bailout last year. The Treasury Department, what is going to get as much 13.6 billion dollars from the IPO, will have to sell GM shares remaining for an average of about $ 53 to redo the ITS Each total investment.
"The new manager has warts, as it comes," said Lawrence Creatura, a Rochester, New York-based fund manager at Federated Investors Inc., which 340 billion U.S. dollars abroad. "If you're anywhere in the range of zero to gain entry to a single digit, which probably was classified as a successful day."
GM's predecessor who was listed on the NYSE on December 20, 1916, according to the website of the Stock Exchange, began trading today under the ticker symbol GM. The automaker based in Detroit began trading on the Toronto Stock Exchange under the ticker MMG.
GM, Lehman
General Motors Corp. sought bankruptcy protection under Chapter 11 on June 1, 2009, after the failure of New York, Lehman Brothers Holdings Inc. in September 2008 and the help of the credit markets froze cause the biggest recession since the Great Depression.
GM owners sold 478 million shares for $ 33 night at the U.S. Mayor From San Francisco each IPO, Visa Inc. 's 19.7 billion U.S. dollars in sales in March 2008.
The Treasury needs to sell all shares of GM were held at an average price of $ 43.67 to pay the costs of ITS investments. This would require ITS outstanding 500 million shares sold at $ 53.07 याच.
"We just get our money back, if we are very patient and if GM performs very well," said Joe Phillippi, director of AutoTrends Consulting Inc. in Short Hills, New Jersey. "GM has to actually hit the ball out of the park over the next two years."
Game Treasury
The Treasury Offer of 358,500,000 shares of the IPO, about 95 million more shares than planned initially, and rely on the United Auto Workers' retiree health sold 18 million more, GM, according to regulatory documents. The over-allotment option an additional increase of 14,300,000 shares offered by the Treasury and 2.7 million by the trust of the UAW.
The IPO would be the lowest bid of the Treasury at 37 percent, or 33 percent over-allotment option, 61 percent, Eichmann filings. The UAW trust investment would drop to 14 percent, or 13 percent to 20 percent option.
IPOs of GM "is an important step in turning the company and work for our taxpayers' money to recover this investment and the exit as soon as possible," Treasury Secretary Timothy F. Geithner said in a statement. "It is now widely recognized jobs taxpayer investment to help save not only during the worst economic crisis in a generation, but also gave the auto industry a solid base on which to build."
Relative Value
While the Treasury has increased the number of shares originally had planned to sell, left Canada and Ontario Unchanged Part of its offer. Canada will recover ITS investment in the bailout plan that if they sell more shares in the IPO if GM shares rise. GM increased its bid to as much as $ 33 on 16 November, from $ 26 to $ 29.
Canada and Ontario to the combined contribution of 10.6 billion U.S. dollars rescue package for the GM, of which $ 1.1 billion has been returned. The two were selling 30.4 million shares in the IPO to reduce its stake to a minimum of 9.3 percent.
A $ 33 per share, GM was valued at 7.8 times earnings this year, based on its net income in the first nine months of 2010. Dearborn, Michigan, Ford Motor Co. trades 8.1 times analysts' estimates for 2010 earnings, the data show. Ford has been the most profitable automaker in the world by September this year.
s of GM, which lost 82 billion U.S. dollars from 2005 to 2008, was valued at an average of 10.3 times earnings from 2000 to 2004, monthly. Ford trade at an average of 13 times earnings in the same period.
"The story underestimated"
GM reported a third quarter net profit of 2.16 billion U.S. dollars last week, bringing his earnings this year to 4.77 billion U.S. dollars. While the company will have positive earnings before interest and taxes in the fourth quarter, they will be "significantly lower" than the first three quarters, Akerson said in a conference call on November 10.
The automaker sold the shares after Standard & Poor's 500 rose to a maximum of two years this month on speculation the U.S. not slip on the back of the economy into recession. The benchmark for U.S. equities ended little changed yesterday after falling for four consecutive days, the longest streak since August.
"GM is a story underestimated," said Dan Veru, chief investment officer of Co-head of Palisade Capital Management LLC in Fort Lee, New Jersey s, which overseas $ 3,100,000,000. "Stocks are going to work its way higher in the first day and then trade over time. Over the next year the stock is going to work and sexually transmitted infections until the mid-$ 40."
SAIC, Kuwait
Shanghai-based SAIC Motor Corp., GM's partner in China, bought the share of 0.97 percent at GM for $ 500 million, the Chinese automaker said in a statement. The Kuwait Investment Authority May acquire a 1 percent or less, a person familiar with the deal this week Said.
Morgan Stanley, JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. led the IPO, including 35 subscribers, according to GM's filing with the Securities and Exchange Commission. Barclays Plc, Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc. and Royal Bank of Canada also listed in the brochure.
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