By Pritam Biswas (Reuters) -Central Bancompany said on Friday that it was targeting a valuation of up to $5.72 billion in its U.S. initial public offering, in a rare move for a U.S. bank looking for a fresh flotation. The Jefferson City, Missouri-based lender is looking to raise as much as $426.7 million by offering […]
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Central Bancompany eyes up to $5.7 billion valuation in rare US bank IPO
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By Pritam Biswas
(Reuters) -Central Bancompany said on Friday that it was targeting a valuation of up to $5.72 billion in its U.S. initial public offering, in a rare move for a U.S. bank looking for a fresh flotation.
The Jefferson City, Missouri-based lender is looking to raise as much as $426.7 million by offering 17.8 million shares priced between $21 and $24 each and reinforcing a strong demand for IPOs in the market.
U.S. IPO activity saw a rebound in the autumn season, with several big names such as Swedish fintech firm Klarna and Winklevoss twins’ cryptocurrency exchange Gemini fetching strong investor interest in their respective public offerings.
However, a government shutdown in October has pulled the brakes on appetites for IPOs, hindering activity with short-term delays.
“The United States government shutdown took the Securities and Exchange Commission offline at exactly the wrong time, like a DJ walking away mid-drop,” said Michael Ashley Schulman, partner and chief investment officer at Running Point Capital.
Since the 2008 financial crisis, U.S. bank IPOs have been rare, as tighter regulations, rising compliance costs and market volatility reduced the appeal of public listings.
“For banking and finance specialists that have seen their pool grow smaller through M&A (and the occasional bellyflop), this will be a welcome addition,” Schulman said.
However, Commercial Bancgroup filed for a U.S. IPO in September and went public earlier this month. It currently trades marginally above its IPO price.
Central Bancompany has total balance sheet assets of $19.2 billion and wealth assets under advice of $15.4 billion, serving consumers and businesses in Missouri, Kansas, Oklahoma, Colorado and Florida.
Morgan Stanley and Keefe, Bruyette & Woods are the joint lead book-running managers for the offering.
Central Bancompany intends to list its shares on the Nasdaq Global Select Market under the ticker symbol “CBC”.
(Reporting by Pritam Biswas in Bengaluru; Editing by Alan Barona)