In an announcement, Detroit car giant General Motors Co said that its current share values have surpassed their 2010 IPO prices. This development would certainly help the carmaker's major shareholder, the US Department of Treasury recover its losses.
The IPO price of the company during its November 2010 sale was at US$33.00 per share. In today's morning trading, GM shares traded as high as US$33.21, marking the day as the first time the stock surpassed the IPO price since May 2011. As of this year, GM's shares have appreciated by at least 14.5%.
The increasing values of the shares can help the Treasury Department trim its losses after it provided US$49.5 billion in bailout funds. Despite the share price increase, the government still expects losses to amount to billion of dollars. Earlier this month, the Treasury said it would again offer its 241.7 million shares for sale .
According to industry analysts, in order for the government to at least break even from the capital infusion for shares deal, the share price must reach US$79 per share.
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