Barclays' shares trading above theoretical ex-rights price

18th Sep 2013 09:00

Barclays stock price plunged on Wednesday morning after beginning to trade without the right to buy shares in its 5.95bn pound rights issue. Nevertheless, while the shares are falling sharply from their official closing price on Wednesday they are above their theoretical ex-rights price. The bank is asking shareholders for cash to help fill a £12.8bn capital shortfall and is offering investors one new share for 185p for every four they held. The new shares are set to begin trading on October 4th. The lender's costs are expected to total £132m, including £1.5m for Credit Suisse and £102m for the underwriting syndicate. Its investment bank Barclays Capital is running the process and will receive a £6m internal payment.The above coincided with Barclays' confirmation that it was facing a £50m fine from the Financial Conduct Authority [FCA] for its 2008 investment deal with Qatari investors.The watchdog has accused the bank of agreeing £322m in secret payments to investors to gain their support for a previous share issuance, worth just over £5bn. The deal was accepted by Qatar Holding, part of the state-owned investment authority of Qatar, and allowed Barclays to avoid a government bailout during the height of the banking crisis.Barclays has insisted that the fees were for giving advice.In another series of scandals to hit the bank this week, Barclays will have to refund at least 300,000 personal loan customers due to mistakes on their paperwork.The errors date back to October 2008 and are expected to cost Barclays about £100m. Barclays said it would begin to contact the affected customers in the next month.Shares in Barclays fell 6.07% to 280.85p at 09:45.RD