* Company raises about $2.38 bln from offering
* Marks the biggest U.S. offering so far this year
* Citigroup, Goldman, Morgan Stanley, Barclays underwriters
(Adds U.S. Treasury statement)
By Avik Das
April 9 Ally Financial Inc's initial
public offering has been priced at the lower-end of the expected
range at $25 per share, an underwriter said, valuing the
bailed-out auto lender at about $12.04 billion.
The IPO raised about $2.38 billion, making it the biggest
U.S. offering so far this year, eclipsing that of Santander
Consumer USA Holdings Inc and IMS Health Holdings Inc
Santander Consumer, the auto-finance unit of Spanish bank
Santander, raised $1.8 billion in January, valuing the
firm at about $8.34 billion at its offering price. Healthcare
information company IMS Health raised about $1.30 billion last
week from its IPO, valuing the company at about $6.64 billion.
The U.S. Treasury, which bailed out Ally for $17.2 billion
during the 2008 financial crisis under the Troubled Asset Relief
Program (TARP), sold all the 95 million shares on offer.
Ahead of the IPO, taxpayers had recovered $15.3 billion of
that investment. The Treasury department said in a statement
that including the anticipated proceeds from the IPO, taxpayers
would have recovered about $500 million more than what was
originally invested in the company.
Ally was among the auto, housing and finance companies
bailed out in 2009 under the $423 billion Troubled Asset Relief
Program (TARP). Taxpayers have recovered $418 billion from TARP
as of March 27.
Shares of Ally, which initially filed for an IPO in March
2011 but repeatedly delayed its plans, are expected to start
trading on Thursday and list on the New York Stock Exchange
under the symbol "ALLY."
Ally previously said it expected to price its offering at
between $25-$28 per share.
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 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, Bernard Orr)