Ally Financial to launch IPO in NY, seeks to raise $2.7 billion

Article by Christian A., on March 28, 2014

Ally Financial Inc. is seeking an initial public offering of its shares, a process that could help United States Treasury Department divests its stake in the company. Ally seeks to raise up to $2.7 billion from the IPO. According to a regulatory filing, with the US Securities and Exchange Commission, Ally said that the Treasury intends to trim its 37-percent stake in Ally to 17 percent by divesting 95 million shares for $25 to $28 each.

Ally is planning to trade on the New York Stock Exchange under the ticker symbol ALLY. “Over our 90-year history, we have successfully differentiated ourselves from our competition by providing premium services for automotive dealers,” Ally said in the filing. The IPO marks the culmination of over a three-year process for Ally.

The company originally planned to launch an IPO March 2011, but decided in June not to pursue it until equity markets improved. Ally chief executive Michael Carpenter later declared that the company had to resolve issues with its mortgage unit before restarting the IPO process. It loss-making mortgage unit entered bankruptcy in May 2012 and received court approval to terminate the process in December.

The Treasury had held a 74-percent stake in Ally, which was then trimmed to 64 percent in November 2013. It further trimmed to 37 percent in January 2014 when the Treasury sold around $3 billion of common stock to private investors. Third Point LLC said in January 2014 that it accumulated a 9.5-percent stake in Ally. According to filing, affiliates of Cerberus Capital Management LP own 8.6 percent of Ally.

Topics: ally financial, ipo

If you liked the article, share on:

Comments

Recommended

Mitsubishi finally introduces the new Xpander MPV at the 2017 Indonesia International Auto Show in Jakarta Indonesia. Replacing the previous Expander, the new multipurpose vehicle will be mostly sold at...
by - August 16, 2017
Infiniti revealed its retro Prototype 9 race car before its slated debut at 2017 Pebble Beach Concours d'Elegance next week. In a recent press release, the company not only disclosed...
by - August 16, 2017
In the United States, not many automakers offer crossovers with a diesel engine option, but Chevrolet does, with their 2018 Equinox. Those who opt for this engine will get some...
by - August 16, 2017
Here are some things that potential buyers of the Ford F-150 and Ford Expedition could look forward to for the 2018 model year. The 2018 models of the F-150 pickup...
by - August 15, 2017
We first saw the McLaren 720S earlier this year when it made its debut at the Geneva Motor Show, and we all agree that it is a beautiful car. But...
by - August 15, 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