Wells Fargo stock offering tops $12b
Friday, 18 December 2009
NEW YORK, Dec 17 (CNNMoney.com): Wells Fargo said it raised more than $12 billion in a stock sale Tuesday as part of a plan to repay $25 billion in government aid.
The sale came one day after the lender joined Citibank and Bank of America in announcing plans to return money received last year under the government's Troubled Asset Relief Programme (TARP).
Wells Fargo said it sold 426 million shares of common stock at $25 per share. The deal's underwriters, which include Goldman Sachs, exercised options to buy an additional 63.9 million shares.
All told, the bank said it sold 489.9 million shares for a total of $12.25 billion.
On Monday, Wells Fargo said it planned to raise $10.4 billion in the stock market. It also announced plans to sell $1.5 billion worth of assets. But the bank said Tuesday that the additional shares purchased by the underwriters had eliminated the need to sell those assets.
"We are very pleased with the positive reception for this equity offering, and we appreciate the confidence investors have demonstrated in Wells Fargo's strength and future prospects," said Howard Atkins, Wells Fargo's chief financial officer, in a statement.
Shares of Wells Fargo rose 0.7 per cent in extended trading to $25.67.
The sale came one day after the lender joined Citibank and Bank of America in announcing plans to return money received last year under the government's Troubled Asset Relief Programme (TARP).
Wells Fargo said it sold 426 million shares of common stock at $25 per share. The deal's underwriters, which include Goldman Sachs, exercised options to buy an additional 63.9 million shares.
All told, the bank said it sold 489.9 million shares for a total of $12.25 billion.
On Monday, Wells Fargo said it planned to raise $10.4 billion in the stock market. It also announced plans to sell $1.5 billion worth of assets. But the bank said Tuesday that the additional shares purchased by the underwriters had eliminated the need to sell those assets.
"We are very pleased with the positive reception for this equity offering, and we appreciate the confidence investors have demonstrated in Wells Fargo's strength and future prospects," said Howard Atkins, Wells Fargo's chief financial officer, in a statement.
Shares of Wells Fargo rose 0.7 per cent in extended trading to $25.67.