Santander Consumer USA raised the expected price on its initial public offering today to the $24-to-$25 range from $22 to $24 per share.
Santander also increased the number of shares it will offer to 75 million from 65 million.
It is being reported that the Santander IPO, which would raise upwards of $1.8 billion, will price tonight and begin trading tomorrow.
Market sources say the deal was well oversubscribed prior to the upsize today — at least five times, according to some estimates, International Financing Review reports.
As Auto Finance News reported Jan. 9, the lender has applied to be listed on the New York Stock Exchange under the symbol “SC.” Santander maintains lending relationships with Chrysler, CarMax and other partners. After the IPO, Santander Consumer USA plans to diversify its financing products and increase the volume of its new-vehicle financing in the prime space, according to the company’s SEC filing today.
Through September 2013, more than 80% of the lender’s loans were subprime. With a greater focus on prime lending, a larger proportion of SCUSA’s business will consist of loans for which it has less flexibility to adjust pricing to absorb losses.
