The automobile industry is still an open space of competition and a bigger brand coming with their IPOs is an evidence of that fact. Recently when The General Motors went ahead with a proposal of bringing an initial public Offering (IPO) in the market to the bankers, they were received by a huge round of applause and more than just a treat.
As soon as the executives of General Motors stepped on the floors of JPMorgan Chase’s and Morgan Stanley’s capital markets businesses, employees of both firms present there were very happy with the decision of General Motors. The management of General Motors was invited for a lunch at JP Morgan.
This welcome actually showed that GM can actually go ahead with their offering process. There were many underwriters among then the major players were Bank Of America, Citigroup and Merill Lynch.
GM has been with Morgan Stanley and JPMorgan. They have been their oldest advisers. Thus they have gone for the top spots for the offering this year itself.
There have been a very harsh competition between WallStreet’s top bankers which made the top brass to fly down to Washington to pitch themselves.
Morgan Stanley and JPMorgan are just getting .75 percent of the total offering price but they have stuck to the company because they believe GM policies and have stood by it for a long time.
