WASHINGTON (AP) — The Treasury Department has raised $2.38 billion after selling a large chunk of its stock in Ally Financial Inc. as part of the government's ongoing effort to recoup the billions of dollars spent bailing out companies during the 2008 financial crisis.
Treasury said Wednesday that it got $25 each for the 95 million shares it sold in an initial public offering. The pricing of the IPO came at the low end of the forecast range of $25 to $28 per share.
The sale brought the amount it has recouped from the bailout of Ally to $17.7 billion, slightly more than the $17.2 billion the government had put up.
The Detroit-based former financing arm of General Motors ran into trouble by making bad bets on subprime mortgages.
With the stock sale, the government's ownership of Ally's common stock will drop from 37 percent to about 17 percent. Further sales of government-owned stock are expected in coming months.
In addition to the 95 million shares of Ally sold, Treasury has granted the underwriters of the sale a 30-day option to buy an additional 14.25 million shares at the $25 initial public offering price.