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August 20, 2021

GM's IPO shares to be $110-$130 each -- you interested?

For weeks now on MSN, we’ve been mulling around the question: what will be the reaction of investors when General Motors once again becomes a public stock?

It all started when insiders speculated the troubled automaker would begin issuing – or is it “reissuing”? – its IPO later this year, and now such details have been confirmed.

While a date isn’t entirely certain (the latest guess is October), GM will indeed make its shares public on the Toronto Stock Exchange in 2010. Will Canadian investors, then, see a buy-low bargain when GM stock becomes available, or a red flashing “Stay Away!” sign instead?

The Government Motors IPO saga took its latest turn Friday when we finally got an estimate for how much the company might list its share price.

According to two Dow Jones I-bankers quoted in the Wall Street Journal, look for GM to list its IPO price somewhere in the $110-$130 range per share.

Wait, you’re saying, $110 per GM share when I can go out and buy Ford stock – that of the didn’t-need-bankruptcy Ford – for around $12 per share?

Yes, that seems to be how it’ll go for General Motors’ re-entrance into becoming a public company – jack up the share price (some thought $80 per unit was a more accurate ballpark) and hope investors will react accordingly.

Now, there are certainly many other bailout/government-related subplots to GM’s IPO later this year. But for our average Jack and Jill Canadian stock buyer, the prospect of buying a piece of GM comes down to one of two viewpoints:

1. You either think the chance to buy GM stock now, at its market re-entry price, is a steal. GM has proven itself to be profitable again, is tapping into emerging markets like Brazil and China, and has turned the corner to becoming one of the world’s most admired companies once more.

2. Or, you think the above is utter nonsense. Investing with GM after what happened in the last, say, five years would be akin to betting Robert Pickton gets accepted into the NCWC: suicide with your money. If you had a gun to your head and had to, wait six months after GM’s IPO for its stock to fall further, then buy it.

Both arguments above hinged on the potential share price of GM’s stock, and now we have it. So, which camp are you in?

At $110-$130 per share, would you be interested in purchasing stock in General Motors for yourself?

By Jason Buckland, MSN Money



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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

James HaversJames Havers

James is the senior editor of MSN Money living in Toronto. He has worked for the Nikkei Shimbun (Tokyo),,, Canadian Business and other publications. Havers turned to journalism after teaching overseas.

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...