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On Friday, the Fed completed a second round of stress tests for the 19 largest U.S. banks.
SunTrust was the largest U.S. lender that had yet to repay its government bailout aid, received at the height of the financial crisis.
The U.S. Treasury will continue to hold 11.9 million warrants to purchase SunTrust common stock, with an exercise price of $44.15 per share, and 6 million warrants with an exercise price of $33.70 per share.
SunTrust shares were up 0.6 percent at $28.43 in midday trading. Goldman Sachs Group Inc, Morgan Stanley and SunTrust are joint book-running managers for the common stock offering.
(Reporting by Joe Rauch; Editing by Lisa Von Ahn)