Improving General Motors’ raises £12bn in IPO

GENERAL Motors, the parent company of car brand Vauxhall, is floating on the US stock market as its turnaround gathers pace.

The Detroit-based automotive giant, has raised more than £12bn ($20.1bn) in one of one of the biggest flotations in history, which will allow it to partly repay the US government, which lent it $50bn last year.

Since the life-saving bail-out GM has slashed costs, restructured its debts and brought in a new management team. Growing demand, particularly from China has also helped it turn the corner.

Closer to home, the launch of the new Astra last year – which was designed and built at Vauxhall’s Ellesmere Port factory, has been a big commercial success. The new Astra Sports Tourer was launched earlier this month.

The flotation at $33 per share will reduces the US government’s stake to 33% from 61%, though the total stake needs to be sold at an average of $43.67 a share for taxpayers to recoup their money.