General Motors Co (GM.UL) raised $20.1 billion in the biggest U.S. initial public offering in history, pricing the shares at the top of the proposed range in response to huge investor demand.
GM sold 478 million common shares at $33 each, raising $15.77 billion, as well as $4.35 billion in preferred shares, more than the initially planned $4 billion.
Including an overallotment option, which will be settled over the next few days, GM looks set to raise $23.1 billion -- the biggest initial public offering ever.
The strong response to the stock sale reflects growing investor confidence that GM is moving beyond its unpopular, taxpayer-funded bankruptcy with sharply lower costs and higher profit potential.
The successful IPO means the U.S. government's stake will immediately drop to 33 percent. It could fall further if certain warrants are exercised in the coming years.
"You're not in GM for a three-month investment," said Tim Leuliette, a director at Visteon Corp. (OTC:VSTO) and longtime U.S. auto industry executive, speaking at the Reuters Autos Summit.
"You're into GM because a critical element, a critical building block of the U.S. economy, has significantly repositioned itself to be competitive."
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