Three years in the making, Ally Financial — formerly GMAC — has filed for an IPO that could net as much as $2.7 billion for the United States Treasury.
Bloomberg reports the income generated from the IPO — expected to be priced between $25 and $28 when the offering debuts April 9 — will go directly to the Treasury upon selling 95 million shares of the financial company, according to a filing with the Securities and Exchange Commission this week.
Ally originally intended to go public at this time in 2011, but shelved the plans in order to set the stage for its mortgage arm, Residential Capital LLC, to enter into bankruptcy, which Automotive News says was not formalized until late last yearm at the same time General Motors sold their remaining 8.5 percent stake in Ally.
After the dust settles, the Treasury will still have anywhere between 14 percent to 17 percent ownership, down from the 37 percent stake the agency currently owns. For their part, Ally has repaid $15.3 billion — or 89 percent — in TARP funds to the federal government.