NEW YORK (
shares were trading sideways on heavy volume Friday morning, one day after the company struggled to raise new equity to repay government bailout funds.
Citigroup shares had strong volume early Friday, with more than 512 million shares changing hands before 11 a.m. The stock's trailing three-month daily average is nearly 497 million shares. But even with strong volume, Citigroup's stock was up just 3 cents, or 1.1%, to $3.23.
Citigroup raised $17 billion by selling shares of common stock priced late Wednesday at $3.15 a share. The price was lower than expected and Citigroup ended up selling far less than expected, partially because of the strong reception
received from a $12 billion offering earlier in the week.
Bank of America
completed its own $19 billion stock offering earlier this month. The company also is using proceeds to repay bailout funds.
The weak demand for Citigroup's stock caused the federal government to back off its plan to sell some of its 7.7 billion-share stake alongside the offering, pledging to hold off selling any of the stock for 90 days.
Citigroup also sold 35 million of tangible equity units, priced at $100 each, generating proceeds of $3.5 billion ($2.8 billion of which was counted as equity).
The offering was the largest public equity offering in U.S capital markets history, according to Citigroup. Still, Citigroup's rush to come to an agreement with regulators over the repayment of bailout funds before the year was out may have been to its detriment.
Shares of Citigroup's stock had fallen to a low of $3.16 on Thursday, but some investors said the dip presented a
--Written by Laurie Kulikowski in New York.