Ally Financial, the onetime financing arm of General Motors, priced its initial public offering at $25 a share on Wednesday, in the lender’s latest effort to shed its status as a ward of the federal government.
The offering price was at the bottom of its range and raised $2.4 billion for the principal selling investor, the Treasury Department. At that level, the firm will be valued at $12 billion.
By finally going public â€" a process that Ally began more than three years ago â€" the lender is close to shedding the remaining vestiges of its bailout during the financial crisis. Its troubles arose from heavy losses tied to risky mortgage lending from a onetime unit known as Residential Capital, which was later split off and put into bankruptcy.
The government invested more than $17 billion in the company, once known as GMAC Financial, in an effort to stabilize both the financial system and the then-ailing G.M. and Chrysler.
Since then, Ally has clambered back to health. It reported $8.1 billion in total financing revenue last year, up 11 percent from the same time a year ago. Its net income from continuing operations fell 70 percent during the same period, to $416 million, as the company exited a number of mortgage businesses.
After the I.P.O., the Treasury Department will still maintain a roughly 17 percent stake. Other major investors include the hedge fund Third Point and the private equity firm Cerberus Capital Management, which owned a majority of Ally until its government bailout and now controls a roughly 8.6 percent stake.
Ally is expected to begin trading on the New York Stock Exchange on Thursday under the ticker symbol “ALLY.â€
Its I.P.O. was led by Citigroup, Goldman Sachs, Morgan Stanley and Barclays.
