Just a year and a half after facing bankruptcy, General Motors is back with a bang as the biggest flotation in US history.
Ringing the bell at the opening of Wall Street on Thursday signalled its first day of trading since shares went on sale. Forecasts predict GM shares will raise almost17 billion euros, beating a record set by Agricultural Bank of China in July.
Bob Schulz, Credit Analyst at Standard & Poor, said:
“The new GM is regaining traction with consumers in North America so, to the extent it’s a fully public company, we think that helps the consumer perception.”
On Wednesday, shares were priced at just over 24 euros each, raising a total of more than 14.5 billion euros. Shares opened strongly and were up seven per cent at the start of trading – with Toronto’s stock exchange joining in.
This dramatic recovery for the company comes after it was forced to take a US government bail-out of 36.5 billion euros in 2009.