GM generates $20bn in triumphant return to stock market

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GM made an impressive return to the stock market yesterday, raising over $20bn with its initial offering to investors.

That figure made it the largest share sale ever in the US and allowed President Obama to hail the success of the auto industry bail-out his administration masterminded.

Gallery 2012 Chevrolet Centennial Edition Corvette

Gallery 2012 Chevrolet Centennial Edition Corvette


Mr Obama said: "Today, one of the toughest tales of the recession took another big step toward becoming a success story.

"American taxpayers are now positioned to recover more than my administration invested in GM, and that's a good thing."

The US government was forced to pore almost $50bn into GM when the carmaker became crippled by bankruptcy in 2008.

Taxpayers money allowed the firm time to restructure its business in an 18-month overhaul before returning to profit for the first time since 2004.

Yesterday's initial public offering (IPO) saw shares being traded at around $33 – an improvement on the $26 price GM had originally set.

While the manufacturer's return to the New York Stock Exchange will allow the US government to reduce its 61 per cent stake in the company to around 33 per cent, it is considered unlikely that the taxpayer will see a return on their investment.

Although $13.6bn was recovered yesterday, the US Treasury would need to sell the remainder of its stock for almost $57 a share just to break even.

Gallery 2012 Chevrolet Centennial Edition Corvette

Gallery 2012 Chevrolet Centennial Edition Corvette