Initial Public Offering Analysis Essay Example | Topics and Well Written Essays - 750 words

Initial Public Offering Analysis - Essay Example This has made the company to invest in various portfolios. One of the major developments that the company undertook in 2010 was the initial public offer (IPO). Based on the huge amount of funds that were generated by the IPO, it became to be one of the largest IPOs in the world up to date. In 2011, General Motors revenue stood at US$150.276 billion while the net income was US$ 7.585 billion, the operating income was US$ 9.287 billion while the total company assets stood at US$ 144.60 billion. Based on the large investment and effective marketing strategies, the company has since 2010 continued to generate high annual profits. Based on the huge funds generated by the IPO in 2010, GM was able to expand its operations in 2011 an aspect that made it to produce 9 million units thus making it to be in the leading position. In 2011, the company global market share stood at 12%. Key markets where the company brands enjoy high demand are US and China. For example, 2.55 and 2.5 million units are sold in China and US respectively per year with Chevrolet brand taking the lead (Rae, 1965). Despite the financial challenge in the form of bankruptcy that the company experienced in 2009, GM has been able to create a strong financial relationship with banks and other stakeholders. In raising the capital, the IPO was successful. Having raised $20.1 billion, the IPO became the largest IPO in US history (Clare and Soyoung, 2010). 478 million common shares were sold by the company at the price of $33 per share. After the IPO, $4.35 billion was raised in the form of preferred shares as compared to the planned figure of $4 billion. One of the major aspects as to why large number of investors participated in the IPO was due to the high level of confidence that they had on GM after being bailed out by the US government in 2009. The company incurred an expense amounting to $25