Citi Raising $4.5 Billion In Latest Capital Boost
Shares of Citigroup sank more than 2% last Wednesday after the company priced a $4.5 billion common stock offering. Citi had previously announced its intention to issue $3 billion of shares but raised the amount in response to investor demand. The offering was priced at $25.27 per share. Citigroup said that the $4.5 billion offering, which comes on the heels of a $6 billion issuance of preferred stock, will would give the company a Tier 1 capital ratio of 8.6% based on March 31 data.
"We were pleased to increase the offering size to $4.5 billion in response to strong demand from a broad base of investors," said Gary Crittenden, chief financial officer of Citi, in a news release. "This optimizes our capital structure and further strengthens our balance sheet." (c) 2008 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com/ http://www.sourcemedia.com/