GM's Initial Public Offering

GM has declared it will price its IPO( Initial Public Offering) at $33 dollars a share, in what could be one of the largest U.S. stock offerings in history. The Price of $33 reflects a better-than-expected demand for GM shares. The deal could generate a total of $23.1 billion, with much of the proceeds going to the U.S Government, which currently owns 61% of GM.

The high profile GM's deal comes after solid months of increased profits by the company. The IPO will not only bring money to GM, but it will also reduce government's influence in the company, as the treasury department is expected to sell 412 million of its shares, raising $13 billion.

The event, in my opinion, is mostly positive. The Government will gain more than previously expected, helping for the repay of the 49 billion spent in GM's bailout. GM will be more autonomous as the government begins to sell its share of the company, and investor will fell more confident to invest in GM.