Citigroup has been left with 24.57 million unplaced PCCW shares after helping the telecommunications company complete a US$400 million new stock issue.
According to a Hong Kong Exchanges and Clearing filing, Citigroup bought 715 million new PCCW shares but placed only 690.43 million as of Monday. In addition to its previous holding in the company, Citigroup now has 199.29 million shares, or a 4.28 per cent stake in PCCW.
But it also holds a short position in the telecoms firm of 191.55 million shares, or about 4.12 per cent.
At HK$4.40, Citigroup paid $108.1 million for the additional stake, compared with the $86 million fee it earned from PCCW.
The company's share price has fallen since the placement, ending yesterday at HK$4.325.
PCCW chairman Richard Li Tzar-kai yesterday said the stock issue was the right course of action.