The lender plans to sell 95 million shares currently owned by the U.S. Department of the Treasury, the start of ending the government’s investment in Ally as a result of a bailout in late 2008. Shares are expected to sell for between $25 and $28 each.
Ally will trade on the New York Stock Exchange under the ticker “ALLY.”
The Treasury Department also gave underwriters the option to purchase another 14 million shares.
Ally’s public offering will be the second such event in the auto finance world this year. Santander Consumer USA launched its IPO in January; shares priced at about $25 each, for a market capitalization of $8.7 billion.
Ally filed an initial IPO prospectus in March 2011, then scrapped its plans in 2012 as it worked through issues related to its legacy mortgage business. A Fitch Ratings report earlier this year suggested that Ally accelerated its fair lending settlement with the Consumer Financial Protection Bureau in December 2013 to allay investor concerns ahead of its IPO.