Ally Financial filed for an initial public offering yesterday. The U.S. Treasury plans to raise $5 billion the Detroit-based auto and mortgage lender . The Securities and Exchange Commission must approve the nearly 500-page prospectus before the company can go public.
The U.S. Treasury, which owns 74 percent of the lender as a part of a $17.2 billion bailout, has agreed to be named as the selling shareholder. The Treasury will keep all the rights to decide whether and at what level it wants to participate in the offering.
As of yet, Ally hasn’t priced the stock or disclosed how much it plans to sell.
– By: Omar Rana
Source: Detroit News