Ally Financial underwriters purchase stock back from Treasury
Treasury to recover additional $181M
The underwriters on Ally Financial’s initial public offering (IPO) have elected to partially exercise the over-allotment option to purchase an additional 7,245,670 shares of Ally common stock at the IPO price of $25.00.
After the sale of these additional shares, the U.S. Department of the Treasury is expected to recover an additional $181 million, which brings the total recovery on the Ally investment to approximately $17.8 billion.
This is approximately $700 million more than was originally invested in the company during the housing crisis. Ally's mortgage unit, ResCap, entered Chapter 11 bankruptcy protection in May 2013. The company since sold off all remaining mortgage operations.
Following the completion of this transaction, Treasury will hold approximately 16% of Ally’s common stock.
In March, after more than a year of preparation, the U.S. Department of the Treasury commenced an underwritten initial public offering of Ally Financial common stock.