The sale comes as Barclays grapples with a fresh compliance and risk misstep, after it disclosed an estimated £ 450 million ($ 589 million) loss on Monday due to overselling structured products in the United States.
Shares in Barclays had closed down 4% Monday after the bank said it oversold billions of pounds worth of securities over a period of about a year, overshooting a $ 20.8 billion limit agreed with United States regulators by $ 15.2 billion.
The products involved include two exchange-traded notes linked to crude oil and market volatility, a source familiar with the matter said. Barclays suspended sales and issuance of both this month.
An unnamed investor launched a sales process for 575 million Barclays shares on Monday, facilitated by Goldman Sachs. The offering was priced at 150 pence ($ 1.96) on Tuesday, towards the top of the target range of 147.50 pence to 150.75 pence, but this still represented a discount greater than 6% to Monday’s closing price, heaping pressure on the share price.
Barclays said it would have to delay a planned £ 1 billion ($ 1.3 billion) share buyback because of the loss on US structured products, which it will have to incur as a result of buying back the securities in question at their original purchase price.