Talk is that Citi will now price its secondary at $3.15, but without government involvement.
AS PLANNED, traders tell me they will issue $20.5 billion of new equity capital and debt securities: $17 billion of common stock (with an overallotment option of $2.55 billion), and $3.5 billion of "tangible equity units" ($2.8 billion to be recorded as equity).
What will NOT HAPPEN: the government will NOT sell $5 billion of its roughly $25 billion in common. That’s likely because the price was below the $3.25 the government got its shares for
The good news: to get rid of the overhang on the stock the government is extending its lockup period from 45 to 90 days, meaning that the government will not dump stock on the market for 90 days.
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