Ally Financial (ALLY), one of the nation’s largest auto lenders, fell 4% in its public debut after wrapping up the largest U.S. initial public offering so far this year.
The Treasury Department, which still owns a majority of the company after its 2008 bailout, sold 95 million shares at $25 each, the low end of Ally’s expected range. The offering raised a total of $2.38 billion, surpassing the January IPO of fellow auto lender Santander Consumer USA Holdings (SC).
Ally shares ticked lower in their first day on the New York Stock Exchange. The stock, listed under the ticker symbol ALLY, closed at $23.98 on Thursday.
Through the IPO, the U.S. government cut its stake in Ally to about 17% from 37%. The Detroit-based company first filed for an IPO in March 2011 as part of an effort to repay its bailout of $17.2 billion.
The Treasury said it will continue to explore options to wind down its remaining stake, according to a statement. Undersecretary Mary Miller said taxpayers have now recovered “more than they invested in Ally,” with the Treasury recording a profit of $500 million including dividends and interest payments.
In December, General Motors (GM) shed its remaining 8.5% stake in its former lending arm, which was previously known as GMAC.