Citigroup When-Issued Share
Discount Narrows
The discount on when-issued shares of Citigroup decreased today
to around 1.5%. Citigroup buyers planning to hold until
Friday can buy discounted "when issued" (formerly preferred
exchange) shares on the open market rather than the common
shares. They will likely convert to common shares by
Friday. As of 12 p.m. eastern, volume on when issued shares
represented about 11% of total C volume. They currently trade
under symbol C.WD.
The trading discount has been weighing on the price of common
Citigroup stock, helping bring it down over 3%. At the same
time it should significantly lessen the blow when the exchange is
complete, since many Citigroup preferred exchange participants
waiting to sell their exchanged Citigroup common shares are now
able to sell before the date they are to receive their shares.
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