Today, May 17th, GM’s shares surpassed the offering price from the 2010 IPO, which means that the US Treasury will be able to pare its losses.

Today GM’s shares rose to $33.21 compared with $33.00 during the November 2010 IPO, the first time the stock has risen above $33 since May 2011. This year so far GM’s stock has increased 14.5%. The increase in the stock price will help the US Treasury reach its target of completely exiting the company by April 2014 and also pare its losses.

At the beginning of this month the Treasury announced it begins another round of GM shares sales. GM received a $49.5 billion bailout and at the end of March the Treasury said it had recovered $30.4 billion. Still, for the Treasury to be able to break even after the shares’ sales, it would have to sell each share for about $79.

“To date, Treasury has recovered approximately $30.4 billion of its investment in GM through repayments, sales of stock, dividends, interest, and other income,” reported the Treasury.

In January the Treasury announced it plans to sell all shares by early 2014, hiring JPMorgan and Citigroup to deal with the sale. For each share they sell the banks will get 1 cent for a fee of up to $3 million.

Source: Reuters


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