This week represents a major point in time for the post-bailout American auto-industry; the new GM will issue its much anticipated IPO, returning the company to Wall Street. Many are predicting success for the company in the IPO, including former United States “˜Car Czar” Steven Rattner.
With increasing sales and enormous demand, the stock price is expected to come in higher rather than lower. 365 million shares are expected to move, and after a price range initially set by underwriters between $26 and $29 per share, demand from investors has bumped the range up to $33 per share.
“This is a new and different GM that will go forth in the public market on Wednesday, and one that has all the tools to be competitive, as I believe as well about Chrysler and Ford,” said Rattner, a former private equity manager who was an adviser to President Barack Obama on the industry bailout.
LET US KNOW WHAT YOU THINK: With Ford stock considered at such a bargain rate right now, would you sink money into GM’s IPO or invest in Ford?
– By: Stephen Calogera
Source: Detroit News