Gm's Offering Makes A Huge Splash
On the heels of the Commerce Dept. decision, one of the Big Three, General Motors, had more to celebrate the next day. The giant auto maker on May 20 launched the public offering of 55 million shares of common stock, raising $2.15 billion. The offering was so popular that it was oversubscribed by 10%.
It was the biggest public stock flotation ever by a U.S. company--and a cheering vote of confidence in the loss-beset carmaker. Priced at $39, the shares weigh in at 144 times the 27 -per-share median analyst estimate for 1992, according to Zacks Investment Research. If car buyers start to show that kind of enthusiasm, GM has little to worry about.