subject: GM IPO: A good buy or a bye-bye [print this page] GM IPO: A good buy or a bye-bye
General Motors IPO is undoubtedly the hottest news running around as the company is expected to raise a record of $20.1 billion through this IPO. GM has priced its common shares at $33, the upper end of its share price range and the share trading is to begin from Thursday morning on the New York Stock Exchange. The common and preferred shares will bat together for the automaker, fetching enormous profit required for GM to emerge out of the government's shadow. GM's market value will be about $49.5 billion when the trading starts, not bad at all!
GM IPO is an historic event but the real question here is, should you should go for GM shares?. Will it be a safe bet when it comes to long-term gains, especially when its industry rival Ford Motors has provided investors with a better investor option?
Ford Motors stocks have returned 65%, approximately ten times more than the returns earned last year. Moreover, Ford avoided filing for bankruptcy and received praises for the kind of resilience it showed during the current phase of recession. Ford was also successful in avoiding a bailout and introduced new models to the market;a smart move that helped boost Ford's market share.
General Motor's failure to sustain its position gets highlighted over here and thus, raises a question about its longevity in the long run.
GM otherwise, has done an incredible job as far as IPO filing is concerned. The company also launched a road-show to persuade investors to buy its stocks.
The best part about this significant event is that General Motor's IPO has an international appeal. The automaker made sure that its IPO filing move gets the best coverage and the GM story gets written in golden words in the history of America.
A statement from GM CFO Chris Liddell says it all. "All of us at GM are excited about this historic milestone and we are especially appreciative of those who stood by us through the toughest times."
GM has come roaring back again, its IPO has already got a major boost on investor demand and the automaker is hoping to rebound with a renewed energy.
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