Ally Financial raises $2.38 billion from IPO

Article by Christian A., on April 11, 2014

Ally Financial Inc. has raised $2.38 billion in its initial public offering, pricing its stock at the lower limit of the proposed range. During the IPO, the United States Treasury Department was able to sell 95 million shares for $25 apiece, according to data compiled by Bloomberg. Ally’s shares will start trading in April 10 and is listed on the New York Stock Exchange under the symbol ALLY.

Ally -- which was rescued by the US government during the 2008 financial crisis -- originally filed to go public in March 2011 as it tried repay back the remainder of the bailout that had already bloated to $17.2 billion. Ally chief executive Michael Carpenter has shifted the lender’s focus back on its auto-lending after its struggling mortgage business collapse.

According to Ally’s prospectus, the IPO should trim the US Treasury’s 37 percent stake to around 17 percent. Treasury had owned up to 74 percent of Ally following the 2011 bailout. The IPO and repayment will lead to the lifting some regulatory restrictions that came with the bailout and will give Ally more freedom to take on more risk that could boost profitability.

Ally’s timing of the IPO came at a time when the stock market is recently experiencing some volatility. The Standard & Poor’s Financial Sector Index fell 2.6 percent through April 8 after reaching a five-year high on April 2.

Ally is facing as carmakers like General Motors and Toyota are hounded by recall crisis. Prior to the IPO, the Treasury had disclosed that it has already recovered $15.3 billion of the total bailout amount provided to Ally.

Topics: ally financial, ipo

If you liked the article, share on:

Comments

Recommended

A lot of fans are excited with the news that Porsche could be unveiling a performance version of its Panamera 4 E-Hybrid plug-in hybrid during the 2017 Geneva Auto Show. ...
by - February 25, 2017
Tesla is finally setting a more “definite” schedule with regards to the official launch of the Tesla Model 3 electric car. A “limited production” is said to be slated to...
by - February 25, 2017
Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 2017
The year 2018 marks the golden anniversary of Subaru of America. Of course, the company will celebrate 50 years of being at the helm of the brand’s crusade in North...
by - February 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries