Ally Financial Inc., the former GMAC 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.
Automotive News reported that Treasury plans to pare its stake to 17% by selling 95 million shares for $25 to $28 apiece, according to a regulatory filing on Thursday (March 27) with the U.S. Securities and Exchange Commission. The government currently owns 37% of the company, which used to be a subsidiary of General Motors. Ally plans 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. “We have multigenerational relationships with many of our dealers and have been a trusted partner through various economic cycles.”
The IPO is the culmination of a more than three-year process for Ally, which originally filed to go public in March 2011. The company, which provides car loans, bank accounts and other savings products, shelved the plan in June of that year until equity markets improved. CEO Michael Carpenter later said the bank had to 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.
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