Davis Polk Advises Ally Financial On Its $2.4 Billion Initial Public Offering

Davis Polk advised Ally Financial Inc. in connection with its $2.4 billion initial public offering of common stock. The U.S. Department of the Treasury (U.S. Treasury), as selling shareholder, sold 95,000,000 shares of common stock of Ally as part of the planned exit of its investment in Ally. The underwriters have the option to purchase up to an additional 14,250,000 shares of common stock from U.S. Treasury to cover over-allotments. If the over-allotment option is exercised in full, the proceeds of the offering to U.S. Treasury will be over $2.7 billion. Ally’s common stock is listed on the New York Stock Exchange under the symbol “ALLY.” The transaction represents the largest initial public offering in the U.S. for 2014 to date.

The underwriting syndicate was led by Citigroup Global Markets Inc., Goldman, Sachs & Co., Morgan Stanley & Co. LLC and Barclays Capital Inc., as joint global coordinators and joint book-running managers and representatives of 33 other underwriters.

Ally is a leading, independent financial services firm with $151.2 billion in total assets as of December 31, 2013. Founded in 1919, Ally is a leading automotive financial services company with over 90 years of experience providing a broad array of financial products and services to automotive dealers and their customers. Ally’s banking subsidiary, Ally Bank, is a leading franchise in the growing direct (Internet, telephone, mobile and mail) banking market and the nineteenth largest bank holding company in the United States.

The Davis Polk capital markets team included partners Richard J. Sandler and Richard A. Drucker, counsel Jean Weng and associates Peter E. Devlin, Melissa Glass and Elina M. Lae. Partner Luigi L. De Ghenghi and associate Andrew S. Fei provided regulatory advice. Senior counsel Beverly Fanger Chase, counsel John T. Wright and associate Chaoyuan Charles Shi provided executive compensation advice. Partner Michael Mollerus and associates Anthony L. Oliva and Ankur Dalal provided tax advice. All members of the Davis Polk team are based in the New York office.

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