Ally Financial, which is a leading global auto finance company and a former unit of GM (GMAC), filed its initial IPO registration statement with the SEC on Thursday. The Detroit, MI-based company, which was founded in 1919 as GM's captive finance subsidiary, was sold in 2006 as part of a $7.4 billion Cerberus-led LBO. However, after injecting $17 billion in bailout funds, the US Treasury now owns a 74% stake and stands to collect all the proceeds raised in the IPO. Through its worldwide automotive finance and US mortgage lending businesses, Ally Financial booked $7.9 billion in net revenues in 2010, and over $1 billion in net income. Though the initial SEC filing includes a placeholder for proposed deal proceeds ($100 million), we estimate the deal could raise $5 billion or more. Citi, Goldman, Sachs & Co. and J.P. Morgan are set to be the lead underwriters on the deal. No pricing terms were disclosed in the initial filing.
General Motor's (GM) November 2010 was third largest ever on a US exchange behind Visa (2008; $17.8 billion) and ENEL SpA (1999; $16.5 billion). The tenth largest US IPO of all time is logistics giant UPS (1999; $5.5 billion).
