GM's IPO Nets $13.5 Billion for U.S. Treasury

Raised more than $23.7 billion for principal shareholders

The U.S. Treasury said on Dec. 2 that it had received $1.8 billion in additional proceeds from GM's initial public offering of stock, bringing the overall reimbursement to $13.5 billion.

GM says the November 18 IPO raised more than $23.7 billion for principal shareholders.

On November 23, the Treasury received $11.7 billion from the sale of 358,546,795 shares of common stock in the massive sale, among the world's largest IPOs.

The underwriters in the offering had a 30-day option to purchase up to 53,782,019 additional shares of common stock from Treasury at the same price to cover over-allotments. The Treasury said the underwriters exercised this over-allotment option in full on November 26, generating the $1.8 billion received on Dec. 2.

The IPO nearly halved the Treasury's stake of outstanding common stock from 60.8% to 33.3%, the department said.

"General Motors IPO is a testament to that companys turnaround and the significant progress we have made continuing to exit our investments and recover taxpayer dollars," said Tim Massad, acting assistant Treasury secretary for financial stability.

Copyright Agence France-Presse, 2010

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