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Citigroup Volume Heavy Ahead of Secondary Offering

Traders are awaiting Citigroup’s secondary offering that will likely price later tonight. Our Bob Pisani has been reporting that pricing of the new shares is expected to be somewhere in the range of $3.30-$3.35 per share (Click here for details).

Early Monday morning, Citigroup formally announced it would repay the funds borrowed from the Federal Government under the TARP program. In doing so, it would need to raise $20.5 billion in capital, the bulk of which would be through a secondary offering of common stock.

Following that news though, trading in the bank’s stock has picked up significantly, with share volume being very heavy over the past 3 days. Prior to the announcement, Citigroup’s average daily volume was nearly 320 million shares. Since the announcement, however, Citigroup stock has seen essentially 2.5 times normal daily volume.

Citigroup Volume

Monday 836 million shares

Yesterday 934 million shares

Today 715 million shares (as of 2:15pm)

>> Unusual Volume Leaders

While trading in Citigroup shares has been heavy, overall volumes in the markets as a whole have been light. In fact the total shares traded on the floor of the New York Stock Exchange this week have only slightly outnumbered Citigroup’s volume.

NYSE Floor Volume

Monday 1.08 billion shares

Yesterday 1.18 billion shares

Today 665 million shares (as of 2:15pm)

In fact, the volume in Citigroup has outpaced total volume on the NYSE floor up until the final hour of trading each day this week. Only the normal boost in trading that occurs towards the close each day has helped the NYSE finish with a slightly stronger volume numbers.

Keep in mind that only 15% of Citigroup’s total daily volume is traded on the floor of the NYSE. The bulk of the company’s shares are traded off the floor on other electronic platforms.

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