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5/12/2020 Taxpayers Receive Additional $1.8 Billion in Proceeds from GM IPO U.S. DEPARTMENT OF THE TREASURY Press Center Taxpayers Receive Additional $1.8 Billion in Proceeds from GM IPO 12/2/2010 Exercise of Over-allotment Option Brings Total Taxpayer Proceeds from GM IPO to $13.5 Billion IPO Reduced Treasury's Common Stock Stake in GM by Nearly Half from 60.8 Percent to 33.3 Percent WASHINGTON – The U.S. Department of the Treasury announced that it today received $1.8 billion in additional net proceeds from General Motors' (GM) initial public offering (IPO), bringing overall net proceeds for taxpayers from the GM IPO to $13.5 billion. On November 23, Treasury received $11.7 billion in net proceeds from the sale of 358,546,795 shares of common stock in GM's IPO. The underwriters in the offering had a 30-day option to purchase up to 53,782,019 additional shares of common stock from Treasury at the same price to cover over-allotments. The underwriters exercised this over-allotment option in full on November 26, and Treasury today received $1.8 billion in net proceeds from the sale of those additional shares. "General Motors' IPO is a testament to that company's turnaround and the significant progress we have made continuing to exit our investments and recover taxpayer dollars," said Tim Massad, Acting Assistant Secretary for Financial Stability. The exercise of the over-allotment option increased the overall amount of GM common stock that Treasury sold in the GM IPO to 412,328,814 shares. In total, the GM IPO reduced Treasury's ownership of GM's outstanding common stock by nearly half from 60.8 percent to 33.3 percent. Initial Sale Over-Allotment Total U.S. Department of Treasury Participation in the GM IPO Shares of Common Stock Sold Net Proceeds ($ billions) 358,546,795 $11.7 53,782,019 $1.8 412,328,814 $13.5 Treasury has invested a total of $49.5 billion in General Motors. In October, Treasury announced that it accepted an offer by GM to repurchase $2.1 billion of preferred stock – a transaction that is expected to occur in mid-December 2010. With this repurchase and the IPO, taxpayers will have received a total of $23.1 billion from GM through repayments, interest, and dividends since the company emerged from bankruptcy in July 2009. Following the IPO and the preferred stock repurchase, Treasury's remaining stake in GM will consist of 500,065,254 shares of common stock. Treasury Investment in GM Pre-January 2009 Post-January 2009 ($ billions) 13.4 36.1 Total $ 49.5 Return from GM Net IPO Proceeds Debt Repayment Proposed Preferred Stock Repurchase Interest & Dividends Total ($ billions) 13.5 6.7 2.1 0.8 $ 23.1 The proceeds from the GM IPO bring the total amount of TARP funds that have been returned to taxpayers to nearly $254 billion. TARP Funds Returned to Taxpayers Repayments Prior to GM IPO Profits from Dividends, Interest, Warrant Sales, and Other Income Cancelled Commitments (Asset Guarantee Program) GM IPO Total https://www.treasury.gov/press-center/press-releases/Pages/tg992.aspx ($ billions) 204.3 31.0 5.0 13.5 253.8 1/2 5/12/2020 Taxpayers Receive Additional $1.8 Billion in Proceeds from GM IPO https://www.treasury.gov/press-center/press-releases/Pages/tg992.aspx 2/2
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