The deal allows the auto financing company to raise $2.4 billion for the selling shareholder, the U.S. Treasury. The pricing places Ally’s initial price at the low end of its expected range of between $25 and $28 a share. The pricing was confirmed by Renaissance Capital, an IPO investment management firm. Ally is offering 95 million shares. Ally was given the right to be a bank holding company in December 2008 amid the financial crisis. Morphing into a bank allowed Ally to receive part of the government’s bailout funds, $17.2 billion, at the time, Bloomberg News reports. All of the proceeds from the IPO will go to the U.S. Treasury, according to Ally’s prospectus.
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1. Thursday, April 10, 2014 - 1:53 PM
Ally Financial shares fall in debut as U.S. Treasury cuts stake
(Reuters) - Shares of auto-lender Ally Financial Inc (ALLY.N) fell as much as 3.8 percent in their market debut on Thursday, taking the shine off the biggest U.S. IPO so far this year as investor appetite for big stock offerings shows signs of waning.