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Ally Financial Inc. (NYSE: ALLY) made its public debut on April 9, when it raised nearly $2.4 billion by offering 95 million shares for $24. That IPO price was below the company's projected range of $25 to $28.
Ally Financial is a Detroit-based auto-loan provider and is a former subsidiary of General Motors Co. (NYSE: GM). Ally was the recipient of a federal government bailout in 2008, and all the shares offered in its IPO belonged to the U.S. Department of the Treasury. Ally Financial did not profit from the deal.
At the time of the deal, Money Morning's Capital Wave Strategist Shah Gilani didn't see ALLY stock as a strong investment.
"I can't believe the U.S. government wants to unleash this on the public," Gilani said. "[Ally] imploded mostly because its subprime unit, Residential Capital LLC, sunk the company. This time Ally is playing the game with subprime auto loans."
ALLY is up slightly from its IPO price at $24.71. In its first day of trading the stock had dipped 4%.