5 percent of the GM IPO will be allocated to employees, retirees and dealers

Article by Christian Andrei, on October 15, 2010

Up to 5% of General Motors Co.’s common stock will be sold in its initial public offering for its employees, retirees and dealers, according to a filing that GM submitted to the US Securities and Exchange Commission.

This disclosure is actually the first details that GM has provided, indicating how its shares will be sold in the IPO expected next month.

About 600,000 workers, retirees and dealers can take advantage of the directed stock purchase program, which Morgan Stanley Smith Barney is administering.

GM’s employees have until October 22 to register to purchase shares in the IPO at a minimum commitment of over $1,000 per investor but the maximum has yet to be determined. GM was restructured in a 2009 bankruptcy with $50 billion in US government funding.

The IPO is GM’s initial step to reduce the US Treasury's nearly 61% stake in the carmaker. In a separate matter, the US Labor Department said it has approved a plan developed as part of bankruptcy for funding a trust fund affiliated with the UAW that is paying for retiree health care.

GM had sought this agency’s approval in order for GM to proceed with its IPO since the UAW's trust fund is another major shareholder, aside from the US government and the governments of Canada and Ontario. [via autonews - sub. required]

Topics: gm, ipo, united states

If you liked the article, share on:


Login or Create new account to add a comment!


Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016
Chevrolet has taken the wraps off its new Chevrolet Colorado ZH2 at the fall meeting of the Association of the United States Army (AUSA). Tagged as the most extreme fuel-cell-powered...
by - October 21, 2016
Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016
Most of you may have heard or already have one of those autonomous home appliances doing the house chores. Thus, it’s not anymore unusual to see a car going places...
by - October 20, 2016