GM Shares Rise By 7%
GM in Detroit
The shares of General Motors (GM) rose by 7% to $ 35.99 / share, after the U.S. car giant made a record IPO offer, writes BBC News. GM has raised U.S. $ 20.1 billion after the offer of shares, marking the biggest sale of securities in the United States. The President Barack Obama said the sale of shares represents an important record for both the company and the U.S. auto industry.
The amount could grow close to a world record of 23.1 billion dollars, if their guarantees exercise their option to sell more shares. A strong investor demand allowed GM to increase the selling price of the shares from $ 26 / share to $ 33 per title. General Motors is back on the market after receiving a $ 50 billion government bailout last year. “We still have much work, but today is the beginning of a new company,” said Mark Reuss, GM’s president in North America.
Q3 Results
General Motors (GM), the giant U.S. automaker, has returned to profit in the third quarter of 2010, amid increasing sales both nationally and internationally, informs BBC News. In the three months which ended on Sept. 30th, General Motors posted a net profit of $ 2 billion, after last year over the company recorded loses. Also, the strong financial performance surpasses those of the Ford group, which recorded over the analyzed quarter a profit of 1.7 billion dollars. The company’s revenue, which last week said it would sell shares worth 13 billion dollars, have amounted to $ 34.1 billion dollars. Thus, GM has reported three consecutive quarters this year that it recorded profit.
Last year, the company needed government aid worth 50 billion dollars, in the context that came under the law applicable to companies that submit applications for bankruptcy. So far, GM has repaid $ 9.5 billion from its government loan. General Motors Group Vice President, Chris Liddel, said the group continues to record “significant progress”.
