LONDON Bookrunners for Barclays' (BARC.L) rights issue will sell shares worth about 460 million pounds ($744 million) in the British bank on Friday after 5.4 percent of investors did not buy into the fundraising.
Barclays is raising 5.8 billion pounds from a rights issue to help fill a capital shortfall identified by its regulator, and said 94.6 percent of investors signed up to buy the discounted shares they were offered.
That leaves a "rump" of 173 million shares to be sold by bookrunners who have underwritten the offer. Those shares are expected to be sold at a small discount to the bank's share price of 273 pence at Thursday's close.
Antony Jenkins, who took over as Barclays chief executive a year ago, is trying to rebuild the bank's reputation after a string of scandals. He said the rights issue would deal "quickly and decisively" with the UK regulator's demands.
The rights issue, the biggest by a British bank since 2009, will raise the equivalent of 15 percent of Barclays' market value. It allowed existing shareholders to buy discounted shares first, giving them a chance to avoid being diluted.
Barclays offered one share to investors at 185p for every four they owned. Shareholders who did not participate in the offer will receive any proceeds from the sale of shares above that price, which is likely to be about 140 million pounds in total.
The share sale is being handled by Credit Suisse, Deutsche Bank, Bank of America Merrill Lynch and Citi, who have agreed to buy any shares not taken. ($1 = 0.6184 British pounds)
(Reporting by Steve Slater; Editing by Matt Scuffham)