General Motors is on its way to a possible date with the record books after its stock was re-introduced to the markets Thursday.
Investors reacted favourably to GM’s IPO, pushing the stock past the US$35 mark, up from the initial price of $33. It is reported that should the company choose to sell its over-allotment option it could hit $23.1 billion, surpassing the current record of $22.1 billion raised by Agricultural Bank of China in July.
The IPO is a stunning turnaround for a company that became dependent on a government bailout in the midst of the financial crisis. GM recently posted a third-quarter profit of $2 billion and has significantly revamped its product line.
However, the stock has a long way to go before the Canadian and U.S. governments see a return on their $53 billion investment in the company.