General Motors stock rises above US$33 initial public offering price for first time in 2 years
Chevrolet Volt vehicles are shown on the assembly line at the General Motors Hamtramck Assembly plant in Hamtramck, Mich., Wednesday, July 27, 2011. (AP / Paul Sancya)
Tom Krisher, The Associated Press
Published Friday, May 17, 2013 1:31PM EDT
DETROIT -- Shares of General Motors reached an important milestone on Friday, topping their initial public offering price of US$33 for the first time in more than two years.
The automaker's stock, which has been on a tear since January, reached $33.58 Friday morning before slipping back to $33.52, up 3.5 per cent, around midday. The auto giant sold shares to the public for $33 in a November 2010 IPO, but they hadn't traded above that price since May 4, 2011.
The rally is good news for the U.S. Treasury, which has been selling off its GM holdings. Taxpayers still own 241.7 million shares, as a result of the government's $49.5 billion bailout of the company in 2008 and 2009.
GM two weeks ago reported strong first-quarter earnings on sales in North America and China. The shares have gained almost 14 per cent this year.
Friday's increase was likely due to general market gains and better prospects in Europe, where GM has lost money for more than a dozen years. The European automakers association said Friday that registrations rose last month for the first time in 18 months. European Union sales were up 1.7 per cent, but GM sales fell 4.5 per cent.