Why GM’s IPO Was a Flop
Wall Street Journal
NOVEMBER 18, 2010
General Motor’s shares opened with a nifty 8%-plus jump on the New York Stock Exchange after pricing its initial public offering at $33 a share last night. The marketing of the new GM is indisputably off to a great start.
Any IPO is a complex affair with many goals and several constituents: a chance to raise money, provide an exit strategy for investors, give an investment moment for money managers large and small, and generate a fee fiesta for bankers.
And for GM, the marketing campaign has gone very well. In the days leading up to the deal, the offering price per share increased, the number of shares on offer rose and the amount of money being raised grew. Not bad for a company derided as Government Motors and at pains to re-assert its market dominance. It’s one thing for a sleek tech company to have a great IPO. It takes a bit more to sex-up Chevrolet.
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