Oct 31 (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.
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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.
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
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