Investors Flock To Bank of America (BAC) Following Share Offering
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After selling off into the close and after-hours on word of a large equity offering, shares of Bank of America (NYSE: BAC) are showing strength in pre-open action. Shares are up 4%.
Late yesterday, BofA confirmed they completed their 1.25 billion share At-the-Market issuance program, raising $13.47 billion and selling shares at an average price of $10.77.
BofA needs to raise $33.9 billion in common equity to meet the government's stress test buffer requirements. With this equity raise and the recent $7.3 billion sale of a stake in China Construction Bank, BofA is now more than halfway there.
What should be noted is that there are at least 7.65 billion common shares outstanding after the sale, suggesting a market cap of $90 billion based on the current price of $11.80.
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