Treasury readies Ally initial public offering
The beginning of the end
After more than a year of preparation, the U.S. Department of the Treasury today announced that it has commenced an underwritten initial public offering of Ally Financial common stock.
Treasury is selling 95,000,000 shares of Ally common stock and has granted the underwriters an option to purchase an additional 14,250,000 of Treasury’s shares.
Treasury currently holds 177,311,010 shares, or approximately 37%, of common stock in the company.
To date, Treasury has recovered approximately $15.3 billion, or approximately 89% of the $17.2 billion investment provided to Ally during the financial crisis, the Treasury said in a statement.
That is a major improvement from early 2013, when taxpayers were still on the hook for billions of dollars from the state-led rescue of Ally.
Operations at Ally are limited in relation to where the mortgage-powerhouse used to be. Ally is no longer in the mortgage business.
Ally's mortgage unit, ResCap, entered Chapter 11 bankruptcy protection in May 2013. The company since sold off all remaining mortgage operations.
The automotive finance company and bank holding company will be traded on the New York Stock Exchange under the ticker ALLY.