Daily News: April 10, 2014

Ally Financial IPO Could Raise More Than $2.7B

Ally Financial announced the pricing of its initial public offering of 95,000,000 shares of common stock at a price to the public of $25 per share. The underwriters of the offering will have a 30-day option to purchase up to an additional 14,250,000 shares of common stock from the U.S. Department of the Treasury (Treasury) at the initial public offering price.

Ally’s common stock is expected to begin trading on the New York Stock Exchange on Thursday, April 10, under the ticker symbol “ALLY.”

All of the shares are offered by Treasury as part of its planned exit of its investment in Ally. After giving effect to the issuance and sale of shares in the initial public offering, Treasury will own 17% of the shares of Ally’s outstanding common stock. Including the initial public offering, Treasury has recovered $17.7 billion on the Ally investment, which is approximately $500 million more than was originally invested in the company.