NEW YORK (Reuters) – Ally Financial filed for an initial public offering that will allow the U.S. government to sell down its majority stake in the bailed-out auto and mortgage lender.
The company filed with the U.S. Securities and Exchange Commission on Thursday to raise up to $100 million, but the IPO ultimately could bring between $6 billion and $7 billion, including common stock and convertible securities, sources previously told Reuters.
Filing for a smaller amount initially allows an issuer to evaluate market conditions closer to the time of the IPO, a common practice for big deals.
When General Motors Co (GM.N) first filed its IPO paperwork with the SEC, it said it expected to raise up to $100 million. Including overallotments, GM ultimately raised $23.1 billion.
Ally, formerly known as GMAC, was once a unit of General Motors.
The IPO will be the latest in a handful of offerings by government-rescued companies that include
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