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CNBC has reported that GM will not allocate any shares in its IPO for customers of Charles Schwab (NASDAQ: SCHW), TDAmeritrade (NASDAQ: AMTD), and E*E*Trade (NASDAQ: EFTC). That means retail investors are unlikely to get shares in the offering.
It should not matter much. The GM shares are overvalued at $30 which would mean the IPO, with over-allotments–bring in $15.6 billion.
GM wants the federal government’s share of the company’s ownership below 50%, so the price of the stock will be relatively aggressive.
GM made $2 billion in the third quarter, but that won’t last
Douglas A. McIntyre
- Chinese Auto Maker Wants A Piece Of GM (blogs.forbes.com)
- The Twitter-24/7 Wall St Market Report 11/10/2010 Ireland Debt, GM Profit, Jobless Claims (247wallst.com)