Bank of Montreal Shares Fall on C$2.7B Stock Offering
Bank of Montreal shares fell early Wednesday after the company said it would seek to raise around 2.7 billion Canadian dollars, or US$2.15 billion, in a public offering.
At 9:38 a.m. ET, shares were down 2.9% at C$149.23.
The Canadian financial institution said Tuesday it would offer 18.1 million common shares at C$149 apiece.
On Tuesday, shares closed at C$153.72.
The bank has also granted its underwriters an option to purchase up to an additional 2.7 million common shares at the same price at any time up to 30 days after the closing of the offering.
BMO said it plans to use the proceeds to finance a portion of its acquisition of Bank of the West and its subsidiaries.