GM Posts $1.3 Billion Profit, IPO Filing To Come Shortly
General Motors is expected to file for an Initial Public Offering tomorrow as the company recorded a $1.3 billion profit. GM is hoping to use the positive momentum of two consecutive quarters of profit to help move its IPO filing along.
Currently, the United States government owns 61 percent of GM. Taxpayers would have to see GM valued at $70 billion before they can break even on the $50 billion bailout given to GM during the financial crisis. GM has currently paid back $7 billion, and President Barack Obama is riding on GM’s continued financial success to vindicate his decision to bail out the company.
The IPO is expected to be worth around $20 billion, the largest since Visa’s $19.7 billion IPO in 2008.
[Source: Reuters]
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