JPMorgan Chase & Co. announced that it intends to offer $10 billion of its common stock for sale to the public.  The global financial services firm is offering  approximately 246.9 million shares of its common stock at $40.50 per share. J.P. Morgan Securities Inc. served as sole bookrunning manager and underwriter for the transaction. The underwriter will have a 30-day option to purchase approximately up to an additional 37.0 million shares of common stock from the company to cover over-allotments. The closing is expected to occur on or about September 30, 2008.

J.P. Morgan & Chase is raising additional capital in  conjuction with its acquisition of  Washington Mutual’s Banking Operation in order to maintain strong capital position. This acquisition creates largest U.S, depository institution with over $900 billion of customer deposits.


Leave Your Comment(s)