Auto Lender Santander Expects Up to $1.6B in IPO

NEW YORK (AP) -

Auto loan financing company Santander Consumer USA Inc., a spinoff of Spanish bank Banco Santander, expects its initial public offering of stock to raise as much as $1.56 billion.

The company said Thursday that it expects shares to price between $22 and $24 each. The 65.2 million shares are coming from Santander Holdings USA, a unit of the bank, as well as Sponsor Auto Finance Holdings and members of the company’s management.

The banks managing the IPO may also buy another 9.8 million shares, which would add to proceeds.

In the middle of the proposed range, Santander Consumer would be valued at $8.3 billion, according to IPO research firm Renaissance Capital.

Santander Consumer, which is based in Dallas, is not selling any stock and won’t receive any proceeds from the offering. It plans to trade its shares on the New York Stock Exchange, under the symbol “SE.”