July 28 (Bloomberg) -- Zions Bancorp, Utah’s biggest bank, sold $525 million of stock, 31 percent more than it proposed in a capital plan approved by the Federal Reserve last week.
The shares were priced at $29.80 apiece, Salt Lake City-based Zions said today in a statement. The company dropped 0.6 percent to $29.89 in New York trading at 9:39 a.m., the biggest decline in the 24-company KBW Bank Index.
Zions failed the Federal Reserve’s annual stress test earlier this year when capital fell below the minimum required in the central bank’s analysis. Regulators said last week they didn’t object to a revised plan, which included maintaining the quarterly dividend at its current rate of 4 cents a share and selling $400 million of common stock.
Under the revised plan, Zion’s Tier 1 common ratio was 5.1 percent, according to the Fed, which requires a minimum of 5 percent.
Proceeds of the share offering, which Zions said will total $514 million, will be used for general corporate purposes, according to the statement.
Deutsche Bank AG and Goldman Sachs Group Inc. are managing the offering. The underwriters have a 30-day option to buy an additional 15 percent of the common stock.
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