Alex Goldmark is the senior producer of New Tech City, a storytelling show about how technology is changing society. Subscribe here to get New Tech City shows delivered right to your devices. Follow him on Twitter @alexgoldmark.
GM Workers Getting Ready to Purchase the New GM Stock
Tuesday, October 12, 2010 - 11:14 PM
(Jerome Vaugn, WDET - Detroit) General Motors’ employees will soon have a chance to purchase the company’s new stock. The Detroit automaker is working on details of its initial public offering of new, post bankruptcy stock.
GM has sent letters to its employees, retirees, and auto dealers allowing them to register for a chance to purchase the stock at its IPO price. The prospective stockholders must invest at least one thousand dollars to register for the purchase.
GM officials hope to raise enough money through the IPO – and later offerings – to repay about $43 billion in government loans. The U.S. government currently owns about 61 percent of General Motors.
The automaker filed for federal bankruptcy protection in June 2009, essentially wiping out the value of the company’s original stock and many workers' retirement savings as well.
The deadline for employees, retirees and dealers to register for the IPO is October 22nd. The IPO is expected to take place next month.