• Oct 14, 2010
General Motors chairman Ed Whitacre is readying the world for GM's Initial Public Offering. The IPO is slated to happen next month and Whitacre has reportedly said that he expects shares to be priced between $20 and $25. That price will likely be achieved via a stock split, with sources saying GM plans to offer shares in a four-to-one split.

This could be good news for past and present employees, as well as dealers, who are invited to purchase shares at the IPO price. The minimum investment is said to be $1,000 to participate in this program and even that minimum dollar amount could yield solid returns right out of the gate.

[Source: The Detroit News | Image: Stan Honda/AFP/Getty]


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 23 Comments
      • 4 Years Ago
      $20-$25 for an IPO of a financially failed company, when Ford, a financially sound (compared to GM) company is trading at less than $14 as of today?
        • 4 Years Ago
        The stock price itself doesn't really matter. Ford simply has more outstanding shares. Ford could split their stock tomorrow and less than $14 a share would go to less than $7 a share or they could have a reverse split and their share price would go up to $28 without changing the companies underlying performance.

        Market cap would be a better gauge of what the street thinks a company is worth.
        • 4 Years Ago
        Stock prices don't compare that way.

        It's the companies total value / # of shares outstanding.
        • 4 Years Ago
        While I am not saying I would buy GM, you cannot compare prices directly. Look at total shares offered and such.

        If Ford has 1,000,000 shares and GM has 100,000 shares then even if GM is valued at $30 a share and Ford at $15 the total value of Ford's shares is still 5 times as much as GM.

        One share of GM may not be the same percentage of the company (share of the company) as Ford
        • 4 Years Ago
        @ Digital Zombie:

        Berkshire Hathaway is a bad example. That stock runs at $125,927.00/share because they have never seen a split. That is extremely rare to see.
        • 4 Years Ago
        So, most of you guys don't pay attention to anything other than cars...
        • 4 Years Ago
        yeah, but doesn't the total value/shares outstanding only give a book value? I'm in school to do financial planning, but haven't gotten too much into this yet. I would assume an IPO is offered at the company's value that is on the books, with the market only coming into play on the secondary scene. I could see this being a big gain in the short run, but long run I would think the stock price would settle a bit lower. Aren't they offering more stock later on that could possibly dilute this IPO as well?
        • 4 Years Ago
        you are funny.
        • 4 Years Ago
        The "don't stock price doesn't matter" sounds right but not totally correct imo.

        I mean, I get it guys but serious it does somewhat matter. Warren Buffet's stock per share is a down payment for a house.
      • 4 Years Ago
      even that minimum dollar amount could yield solid returns right out of the gate.


      That could be true for the first day/week or month, but I would not stray too far from the SELL button. You have been warned.
      • 4 Years Ago
      Just what I want. Stock in a company with $30 billion dollars worth of goodwill on the books.

      http://www.bloomberg.com/news/2010-09-09/how-gm-made-30-billion-appear-from-thin-air-commentary-by-jonathan-weil.html
      • 4 Years Ago
      That's too high. I though bought buying some but not at that price. Ill stick w my Ford stock bought $1000 worth at 2ish a share when was way down awhile back :)
      • 4 Years Ago
      Hope it does well.
      • 4 Years Ago
      What is the market cap going to be? That is the number that really matters.
      • 4 Years Ago
      You'd have to be REAL dumb to buy any serious quantity of this stuff.
        • 4 Years Ago
        Well, you've got a good point there. I suggest you commence with your massive stock purchase on day 1!
        • 4 Years Ago
        Please explain why?
        • 4 Years Ago
        What has changed? You mean other than dumping all of their debt, most of the pension liabilities and reworking the labor contracts?

        I'm not suggesting that you should buy, but much has changed.
        • 4 Years Ago
        Ok, that's a very simplecar way of looking at things.

        Quite a bit has changed with the corporate structure at GM. You're just looking at the cars, perception etc.

        Consider this will be the largest IPO except for Visa (maybe). There will be money to be made here and the stock will go up.
        • 4 Years Ago
        If you invested $100,000 in GM stock in 1980, how much would it be worth today?

        Consider the answer to that question and all of the factors that led to it. Now.. how much has REALLY changed? That's why you'd have to be real dumb to make a big bet on this company.
        • 4 Years Ago
        Haven't you people heard? GM's pension fund is underfunded by about 25 BILLION dollars - that's the ammount GM owes. Fanboys here like to make fun of Ford's debt, but GM is hardly any better when you look at the whole picture, which is why GM has been getting similar credit ratings as Ford recently.
      • 4 Years Ago
      Wow. GL to the US gov't, as this stuff has to get up to over 100$ per share for them just to come out even on what they sank into it.
      • 4 Years Ago
      Aren't the two Morgans underwriting the IPO the ones who'll eventually decide on the price?
    • Load More Comments