WASHINGTON, D.C. -
The over-allotment portion of General Motors’ recent initial public offering brought the U.S. Treasury additional net proceeds of $1.8 billion, which is on top of the $11.7 billion the Treasury pulled in from the initial sale, the department revealed late last week.
As such, the Treasury netted $13.5 million overall in proceeds from the GM IPO.
“General Motors’ IPO is a testament to that company’s turnaround and the significant progress we have made continuing to exit our investments and recover taxpayer dollars,” stated Tim Massad, Acting Assistant Secretary for Financial Stability.
Explaining a bit more about the Treasury’s activity in the IPO, officials noted that the Treasury sold 358,546,795 GM common stock shares during the initial sale on Nov. 23, which generated the $11.7 billion figure for the Treasury.
Then, IPO underwriters had a 30-day window to choose whether they wanted to buy 53,782,019 additional GM common-stock shares that the Treasury was selling. This sale was to cover the over-allotment.
The underwriters fully exercised their option, and as a result, the Treasury pulled in the additional $1.8 billion. All told, the Treasury sold 412,328,814 shares of GM common stock.
Now, the Treasury owns 33.3 percent of GM’s outstanding common stock. It was 60.8 percent prior to the IPO.
As announced by the department in October, GM will buy back $2.1 billion of preferred stock in the middle of this month.
Once that happens, the amount the Treasury has received from GM since post-bankruptcy began in July 2009 will total $23.1 billion. Composing this sum are net IPO proceeds, debt repayment, preferred stock repurchase and interest and dividends.
After the impact of the IPO and the preferred stock repurchase, the Treasury will own 500,065,254 shares of GM’s common stock.