NEW YORK Jan 16 Online brokerage Loyal3
Holdings has taken out a series of Internet ads aimed at getting
retail investors to bet on the initial public offering of
Santander Consumer USA , the U.S. auto-loan arm of
Spain's Banco Santander SA.
Loyal3, a co-manager of the IPO, said individual investors
can buy as little as $100 worth of shares in the IPO and as much
as $10,000, at the same price and time that it would be
available to hedge funds and other large investors, on a
first-come first-served basis.
The IPO is expected to be priced between $22 and $24 per
share of common stock and raise up to $1.56 billion, Santander
Consumer USA said in its prospectus.
The online ads, which have appeared on websites including
the Wall Street Journal and through emails from advertisers of
Bloomberg Businessweek, invite retail consumers to invest in the
IPO, with a link leading to Loyal3's website.
Santander Consumer USA, which sells auto loans online, as
well as through dealerships and a partnership with Chrysler, set
aside up to 2 percent of the common shares in its IPO for retail
The IPO's performance will be closely watched ahead of
widely expected offerings from other financial services
companies this year.
IPO activity surged worldwide last year as low interest
rates and a surging stock market enticed investors. Companies
raised $159.7 billion from IPOs globally, a 37 percent increase
on 2012, and bankers expect 2014 to carry on where 2013 left
Ally Financial Inc, majority owned by the U.S. government,
is hoping to go public this year while General Electric Co
plans to spin off of its credit card unit.
Loyal3 said on its website it does not charge trading fees,
but warned it combines sell orders into batches that it
typically sells once a day, so the price of the shares may be
different when they are sold than at the time the investor puts
in the sell order.