Ally Financial to offer dealers 5 percent of the common shares as part of IPO

Article by Christian A., on June 7, 2011

Ally Financial Inc. submitted a filing with the U.S. Securities and Exchange Commission where it confirmed plans to offer as high as 5% of the common shares to auto dealers issued as part of its initial public offering.

As a result, auto dealers (who are the main customers of Ally) will get access to the lender's public stock offering anticipated this summer. Ally, which is formerly known as GMAC, offers inventory financing to approximately 5,000 U.S. dealers.

A majority of this number represent General Motors and Chrysler Group brands. In an amended IPO prospectus with the SEC last week, Ally said that the general public will be offered any shares left from the 5% reserve. Ally declined to reveal the dealer eligibility requirements for the directed share program.

Meanwhile, Ally spokeswoman Gina Proia chose not to comment on the possible size or timing of the stock offering.

Early this year, The Wall Street Journal got information from insiders that the U.S. Treasury wants to sell about $5 billion of common stock as part of the offering. Ally filed a prospectus in late March to go public. About 73.8% of the lender is owned by the U.S. government.

On the New York Stock Exchange, the shares will trade under the symbol ALLY. The problem is that U.S. stock markets have been drawing back after the filing. There have been concerns about the economic improvement in the U.S. that cause further complexity to IPOs that Chrysler and Delphi Automotive are planning.

Last week, Chrysler implied that it may actually pass up an IPO altogether. During the Ally IPO, the U.S. Treasury Department intends to convert $2.9 billion of its existing holding of $5.9 billion of preferred securities into common stock, as indicated by Ally in an amended IPO prospectus filing last May with the SEC.

Topics: ally financial, ipo

If you liked the article, share on:

Comments

Recommended

During car crashes and accidents, there are times that its occupants can’t get out easily. There are times when the only way to get out of that situation is to...
by - February 23, 2017
Could this be a special version of Ferrari’s much acclaimed LaFerrari? No matter how we look at it, the patent images for this sports car from Ferrari indicate its striking...
by - February 23, 2017
How fast can a 2017 Chevrolet Camaro ZL1 actually go? Considering the amount of power lurking underneath its line-laden bonnet, the 2017 Camaro ZL1 is capable of achieving a top...
by - February 23, 2017
As it turned out, we’ll be seeing Toyota’s new super supermini at the 2017 Geneva Motor Show in March. It’s time we all get to meet the new Toyota Yaris...
by - February 23, 2017
Opel revealed it has sweetened the pot for 2017 Insignia Grand Sport customers with the Opel Exclusive program. Through this program, the brand hopes to introduce a wide selection of...
by - February 22, 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