Shares of Regions Financial Corp. tumbled 16.16% Thursday after the Birmingham, Ala., company completed a highly dilutive stock offering.
Regions raised $1.85 billion after selling 400 million shares of common stock and 250,000 share of convertible preferred stock. At $4 a share, the common stock sold at a nearly 25% discount to where shares closed Tuesday when the sale was announced.
The $142 billion-asset company touted the effort as an important step to meeting a Treasury Department mandate that it raise $2.5 billion in capital.Underwriters, meanwhile, were authorized to sell an additional 60 million shares of common stock and 37.5 million preferred shares, Regions said.
