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On Nov. 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 Nov. 26, and Treasury on Thursday 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.
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.
The proceeds from the GM IPO bring the total amount of Troubled Asset Relief Program (TARP) funds that have been returned to taxpayers to nearly $254 billion.
The federal government originally had authorized $700 billion for the program, but that was later reduced to $475 billion. Total disbursements are put at $433 billion, according to a Nov. 29 report from the Congressional Budget Office.
