Central Bancompany valued at $5.26 billion in Nasdaq debut

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By Pritam Biswas

(Reuters) -Central Bancompany jumped 5% in its Nasdaq debut on Thursday, fetching the U.S. lender a valuation of $5.26 billion and extending this year’s streak of financial firms going public.

The company’s shares opened at $22.06, above its IPO price of $21 apiece at which it raised $373.33 million by selling around 17.78 million shares. The company marketed the IPO in the price range of between $21 and $24.

U.S. IPO activity picked up in September, with Swedish fintech Klarna and the Winklevoss twins’ crypto exchange Gemini drawing strong investor demand in their market debuts.

But travel technology firm Navan and electric aircraft maker Beta Technologies have drawn a tepid response, underscoring caution in the market, amid a prolonged U.S. government shutdown.

Investors have also been cautious over credit risks in the banking sector after two corporate bankruptcies reignited concerns about stress and lending practices in the global private credit market.

However, analysts downplayed sector-wide stress, saying the incidents were isolated.

“I don’t believe underlying credit worries will deter investors from buying the stock. The bank’s successful trajectory fits well with investors looking for exposure to banks operating in markets with strong economic growth,” said Josef Schuster, CEO of IPO research firm IPOX.

Jefferson City, Missouri-based Central Bancompany has total balance sheet assets of $19.2 billion and wealth assets under advice of $15.4 billion, and serves consumers and businesses in Missouri, Kansas, Oklahoma, Colorado and Florida.

Central joins Commercial Bancgroup on the public markets, after the lender’s debut last month.

Morgan Stanley and Keefe, Bruyette & Woods are the joint lead book-running managers for the offering.

(Reporting by Pritam Biswas in Bengaluru; Editing by Krishna Chandra Eluri)