Tags: Ally | IPO | Treasury | crisis

Ally Financial IPO Seen Generating $2.7 Billion for Treasury

Thursday, 27 Mar 2014 08:39 AM

Ally Financial Inc., the auto lender rescued by the U.S. government during the 2008 financial crisis, is helping the Treasury Department divest its stake by seeking as much as $2.7 billion in an initial public offering.

Treasury plans to pare its stake to 17 percent by selling 95 million shares for $25 to $28 apiece, according to a regulatory filing today with the U.S. Securities and Exchange Commission. The government currently owns 37 percent of the Detroit-based company, which used to be a subsidiary of General Motors Co. Ally plans to trade on the New York Stock Exchange under the ticker symbol ALLY.

The IPO is the culmination of a more than three-year process for Ally, which originally filed to go public in March 2011. In June of that year, the company shelved the plan until equity markets improved. Chief Executive Officer Michael Carpenter later said it must resolve problems with its mortgage unit before restarting the process.

The company’s money-losing mortgage business entered bankruptcy in May 2012 and got court approval to end the process in December.

Citigroup Inc., Goldman Sachs Group Inc., Morgan Stanley and Barclays Plc are leading the offering.

© Copyright 2017 Bloomberg News. All rights reserved.

 
1Like our page
2Share
InvestingAnalysis
Ally Financial Inc., the auto lender rescued by the U.S. government during the 2008 financial crisis, is helping the Treasury Department divest its stake by seeking as much as $2.7 billion in an initial public offering.
Ally,IPO,Treasury,crisis
193
2014-39-27
Thursday, 27 Mar 2014 08:39 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved