Shares of Bank of Montreal (TSX: T. BMO, Stock Forum) tumbled more than 8% to $29.92 Tuesday after the bank announced after Monday’s market close that it is offering more than 33 million common shares at $30.00 per share
The total gross proceeds from the offering are approximately $1 billion.
The offering will be underwritten on a bought deal basis by a syndicate of underwriters, to whom the bank has granted an over-allotment option to purchase up to a further 3,334,000 common shares.
The offering is expected to close on December 24.
On the company’s Bullboard on Monday evening, marpincan commented: “Headed for 30 area tomorrow. Will pick some up at 30[sic].”
shoooter replied on Tuesday, saying: “yup, I'll be in there buying as well, almost a 10% yield at 30.00, and it's doubtfull that they will cut their divy...although you never know until you know, lol...[sic]”
Meanwhile, upandaway10 offered a comment on Canadian banks in general, saying: “Canadian banks still way way over priced. Must go down to be line with American ones. Expect another 50% off majors form here within a couple of months. Dividends will be halved by then. You will never see banks back to their highs in our lifetime. Merry Christmas all!!!![sic]”
