General Motors IPO Results In Sell Off

Shares of General Motors (NYSE:GM) returned to the New York Stock Exchange today on the heels of the largest IPO in history.The automaker, which declared Chapter 11 bankruptcy in June 2009 and bailed out by the US government, will raise $23 billion dollars in proceeds from 478 million common at $33/share and in preferred stock..

Although the NYSE trading floor was filled with excitement and applause, the trading action throughout the day was poor as shareholders quickly sold off a 8% gap up. On open, the first trade to hit the tape started at $35.40/share with nearly 40 million shares exchanged in the first 15 minutes. That took the stock to $35.99/share but quickly sold off and deteriorated to close at $34.01.

Trading in other automakers today:

• Ford Motor (NYSE: F) down 3%
• Honda Motors (NYSE: HMC) up 2.7%
• Toyota Motors (NYSE: TM) up 1.8%.

About Kerry Kobashi

Kerry is the founder of KerryOnWorld. He lives in Silicon Valley and has worked as an engineer and project manager. He owns Kobashi Computing a consulting company.