Auto loan financing company Santander Consumer USA Inc. has raised $1.8 billion through an initial public offering of stock priced at $24 per share, the low end of the narrow range it had forecast.
The spinoff of Spanish bank Banco Santander said its common stock is expected to start trading Thursday on the New York Stock Exchange under the ticker symbol "SC." The company had said Wednesday in a Securities and Exchange Commission filing that the IPO would involve 75 million shares priced between $24 and $25 each.
All of the shares being sold are by current stockholders. Santander Consumer, which is based in Dallas, is not selling any stock and won't receive any proceeds from the offering. The banks managing the IPO may also have a 30-day option to buy another 11.2 million shares, which would add to proceeds.
Santander Consumer originates loans for both new and used cars mainly through auto dealers for manufacturers like Chrysler, Ford, General Motors, and Toyota. It also works with independent dealers like CarMax and through national and regional banks.