Barclays' SEO

British banking giant Barclays announced that it would issue £5.8 billion in new stock. In addition, the company planned to issue £2 billion in new bonds that would face a mandatory conversion into stock if the bank get into trouble. Barlcays' new issues are different from many other corporate SEOs because the new stock and bonds are being issued since the bank has a regulatory capital shortfall. In short, banking regulators believe that Barclays has insufficient capital to meet its liabilities. As in most SEOs, the stock fell. In Barclays' case, the stock price dropped 6 percent.