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 Ally's IPO raised $2.38 billion, after the offering of 95 million
shares was priced at the low end of its expected range. The company
previously said it expected to price its offering at between $25-$28
per share.
Ally's IPO is the biggest U.S. offering so far this year, eclipsing
that of Santander Consumer USA Holdings Inc <SC.N> and IMS Health
Holdings Inc <IMS.N>.
While Santander Consumer, the auto-finance unit of Spanish bank
Santander <SAN.MC>, raised $1.8 billion in January, IMS Health
raised about $1.30 billion last week.
The US Department of Treasury is selling all the shares of Ally in
the offering.
The Treasury, which held 36.8 percent of Ally before the offering,
will see its stake fall to 14.1 percent if underwriters exercise an
option to sell additional shares on behalf of the government.
Activist investor Daniel Loeb's hedge fund Third Point LLC and
Cerberus Capital Management are not selling any of their shares in
Ally in the IPO. Third Point has a 9.5 percent stake, while Cerberus
Capital owns an 8.6 percent stake.
The auto lender was bailed out for $17.2 billion during the 2008
financial crisis. Ahead of the IPO, taxpayers have recovered $15.3
billion.
Shares of the Detroit-based company are expected to start trading on
Thursday and list on the New York Stock Exchange under the symbol
"ALLY."
Ally initially filed for an IPO in March 2011 but repeatedly delayed
its plans due to market conditions and as it faced potential fines
over its mortgage lending practices.
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The company's net income fell to $361 million from $1.20 billion in
2013. Total net revenue fell about 4.5 percent to $4.26 billion
during the period.
Ally's fourth-quarter profit was hurt by a charge to settle
allegations by regulators that it discriminated against minorities
in auto lending.
The company's auto finance business also slowed in the quarter, with
new loans falling 8 percent to $8.2 billion as its agreement as
Chrysler's preferred lender expired.
Citigroup, Goldman Sachs & Co, Morgan Stanley and Barclays are the
lead underwriters for the offering.
(Reporting by Avik Das in Bangalore; editing by Sriraj Kalluvila)
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