Ally Financial Files for IPO That Could Raise More Than $3 Billion

NEW YORK (AP) -- Ally Financial has filed for an initial public offering that could raise as much as $3.06 billion.

The U.S. Department of the Treasury said Thursday that it plans to sell 95 million shares for between $25 and $28 each, according to a filing Thursday with the Securities and Exchange Commission. That would raise between $2.38 billion and $2.66 billion.

Treasury also granted the offering's underwriters -- Citigroup, Goldman, Sachs & Co., Morgan Stanley and Barclays -- a 30-day option to buy up to an additional 14.3 million shares to cover possible additional demand. The would raise up to $399 million more, boosting the overall proceeds as high as $3.06 billion.

Ally stock is expected to trade on the New York Stock Exchange under the symbol "ALLY." The Detroit-based bank holding company will not receive any of the proceeds from the offering.

The Department of the Treasury currently holds 177,311,010 shares, or approximately 37%, of common stock in the company.

Ally Financial received a total of $17.2 billion in government support during the financial crisis. The government first bailed out the company, then known as GMAC, in late 2008 as part of the Bush administration's aid to the auto industry.

The Obama administration provided additional funding in May and December 2009. To date, Treasury has recovered approximately $15.3 billion, or about 89%, of the $17.2 billion investment provided to Ally during the financial crisis, according to the government.

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