Wells Fargo (WFC) priced 426 million shares at $25 each Tuesday, raising $10.6 billion and making it the last of the major banks to announce plans to repay TARP funds.
The pricing was below the closing price of Wells' shares on Monday, but the shares were up on the news, recently changing hands at $25.82, up 35 cents.
The $10.6 billion capital raise will be used in part to repay the $25 billion that Wells borrowed from the Troubled Asset Relief Program more than a year ago. The rest of the balance will be paid with the bank's own cash reserves, Wells said late Monday.
"Now we're ready to fully repay TARP in a way that serves the interests of the U.S. taxpayer, as well as our customers, team members and investors," said Wells Fargo president and CEO, John Stumpf.
Wells Fargo is the last large bank to announce a capital raise to repay TARP, following the repayment announcements of Citigroup (C) on Monday and Bank of America (BAC) last week. Wells estimates that once it repays TARP, the U.S. taxpayer will have made a profit $1.4 billion from dividends.
The offering was underwritten by Wells Fargo and Goldman Sachs (GS) and is expected to close on Friday.
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