Citi sold 5.4 billion new common shares at $3.15 each last night, generating net proceeds of about $17 billion. The bank also sold 35 million tangible equity units at $100 each, generating net proceeds of approximately $3.5 billion. About $2.8 billion of that will count as new equity for the company.
CNBC's David Faber is reporting that the underwriting syndicate is supporting the stock at $3.00 and taking in stock, after yesterday's secondary. How much are they willing to buy here? How much stock will be thrown at them.
If the syndicate bid breaks below $3.00, all hell breaks loose.
UPDATE: Following weak price activity for yesterday's Citi secondary the Treasury has cancelled its planned follow on sale of Citi stock.The Treasury had been planning to sell up to $5 billion of its Citi shares at the same time as the bank completed its offering of new stock, according to a statement earlier this week
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