In an effort to strengthen its equity capitalization, Deutsche Bank (NYSE: DB ) has placed 90 million shares of newly issued stock with institutional investors, the company announced today. The offering is not registered with the Securities and Exchange Commission; as a result, the new shares "may not be offered, sold, or delivered" to U.S. investors.
The shares were priced at 32.90 euros, equal to $43.10 per share, raising a total of $3.88 billion in an effort to "strengthen the equity capitalization of the bank," according to the release. Deutsche Bank initially announced its intention to raise additional capital via a stock offering April 29.
In addition to the placement of newly issued stock to overseas institutional investors, Deutsche Bank left open the possibility of issuing as much as 2 billion euros ($2.62 billion) of subordinated debt "over the next 12 months." The subordinated debt is not expected to be registered with the SEC, so it will not be made available to U.S. investors.