Santander Consumer USA, a provider of auto loans to subprime buyers, has raised $1.8 billion from an initial public offering amid a recovery in U.S. car sales and strong investor interest in high-yielding loans sold by consumer finance companies.
The company, which is controlled by the Spanish bank Santander, sold 75 million shares, or about 21.5 percent of its shares, at $24 each on Wednesday after increasing the size of the offering and moving it up by one day.
A US listing will allow private equity investors Warburg Pincus, KKR and Centerbridge Partners to sell a large portion of their combined 25 percent stake, which they acquired in 2011 for $1 billion. The trio are cutting their stake to 7 percent.
(Read more: Subprime deja vu: Car lending standards ease)