April 10 Shares of bailed out auto-lender Ally
Financial Inc fell 3 percent in their market debut,
valuing the company at about $11.7 billion in the biggest U.S.
IPO so far this year.
The IPO raised $2.38 billion after the U.S. Treasury sold 95
million shares at $25 per share, at the low end of the expected
price range of $25-$28 per share.
The Treasury, which had bailed out Ally for $17.2 billion
during the 2008 financial crisis, said on Wednesday that with
the IPO it had so far made a profit of $500 million on its
investment, including dividends and interest payments.
The Treasury now has a stake of 17.1 percent in Ally which
will fall to 14.1 percent if the underwriters exercise an option
to sell additional shares on behalf of the government.
Detroit-based Ally's shares were trading at $24.25 shortly
after the opening on the New York Stock Exchange.
Citigroup, Goldman Sachs, Morgan Stanley and Barclays were
the lead underwriters for the offering.
(Reporting by Tanya Agrawal in Bangalore; Editing by Savio