(Includes updated stock prices.)

NEW YORK (TheStreet) -- Citigroup ( C) shares lost as much as 6% Monday after the company said about $20.3 billion of publicly held convertible and non-convertible preferred and trust preferred securities were validly tendered in exchange for common stock.

Citigroup said Sunday this represents 99% of the value of the securities it was offering to exchange. The bank will issue 5.83 billion common shares to the public exchange offer participants.

The stock, which dipped as low as $2.56, closed 4 cents to $2.69.

Citigroup said on Thursday it completed a $12.5 billion exchange that swapped preferred securities held by private debt holders for interim securities and warrants that will eventually be converted into common stock. The government carried out a separate exchange, swapping $12.5 billion of its preferred shares in the bank for securities and warrants as well.

The exchange offers will eventually give the federal government a 34% stake in the bank.

With the expiration of the public exchange offer, and the U.S. government's agreement to match up to $12.5 billion of securities exchanged in the public exchange offers, Citigroup said Sunday it expects to complete a further exchange with the U.S. for $12.5 billion of Citigroup preferred stock.

As a result of the completion of all the exchange offers, about $58 billion of preferred and trust preferred securities will have been exchanged to common stock.

"The successful completion of the exchange offers marks a significant milestone for Citi," said CEO Vikram Pandit in a statement.

Pandit said the bank will have about $100 billion of tangible common equity and a tier 1 common ratio of about 9% based on its June 30 results.

--Reported by Joseph Woelfel in New York.
Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

If you liked this article you might like

SEC's Cyber-Gaffe Highlights Risk of Trump Budget Cuts at Agency

China's Banks Halt Business With North Korea Per United Nations Sanctions

Why Hurricanes Won't Force the Fed to Ditch a December Rate Hike

Fed Pares $4.5 Trillion Balance Sheet But Easy-Money Era Isn't Over

Bank Stocks Move Higher as Fed Decides to Start Unwinding Balance Sheet