Chris Holden

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Marcio Alaor’s Interpretation Of The IPO’s Of The Automobile Manufacturers

by Chris Holden - December 2nd, 2015.
Filed under: Banks, BMG, Brazil.

Much of the auto industry is turning to the stock market to enhance their profits. This is in addition to marketing strategies to improve overall auto sales. Most of this reasoning is because many of the big name auto manufacturers had a large decline in their financial profits. They experienced a struggle to remain in business. However, there have been some negative feelings about this because some of the big name motor companies received financial assistance from the federal government in order to avoid bankruptcy and to prevent them from going out of business completely. For the most part, turning to the stock market has been a positive decision on their part that some financial institutions view as a step in the right direction towards economic improvement.
In a recent article on Exame, Marcio Alaor, the executive of BMG Bank, feels that this is a good move on behalf of the auto manufacturers. For instance, General Motors was one of the first to publicly trade after being an IPO after 100 years in business. This particular IPO has a current trading value of $56.2 billion. In 1956, the value of Ford’s IPO was around $600 million. This is small in comparison to the $10 billion in value for Ferrari’s IPO. This could bring both substantial income not only for this particular auto manufacturer, but also for those individuals who publicly purchase stock in the company. IPO stands for initial purchase offer. This usually starts being available to institutional investors and then to the public. In doing so, a once privately owned company becomes a corporation. Marcio Alaor analyzes this type of business strategy as well as how some of the other auto manufacturers have done financially by becoming a publicly traded corporation.

Marcio Alaor is the executive of BMG Bank, the largest bank in Brazil. Through his work as part of the executive team of BMG, he has been able to expand it to be a sponsor of soccer teams and has helped to introduce several athletic and cultural activities and personalities to his country. Alaor has introduced products that normally are unknown to banking in countries outside of the United States such as mobile and online banking. He is becoming a leader in the financial world in Brazil and across the globe.

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