(Reuters) -Northpointe Bancshares is targeting a valuation of up to $595 million in its initial public offering in the United States, the private equity-backed community bank said on Friday.
The Grand Rapids, Michigan-based community bank plans to sell 7.4 million shares priced between $16 and $18 each, while some existing shareholders are also offering 1.5 million shares in the price band.
The bank and its shareholders together aim to raise up to $159 million in what will be the first IPO of a U.S. bank this year.
Bank stocks have rallied after Donald Trump’s U.S. election victory on hopes that the sector is poised to benefit in a more favorable operating environment, with analysts suggesting that 2025 could be a new “Goldilocks” period for the industry.
Castle Creek, a private equity firm that invests in community banks, paid $25 million in 2019 for a 27% stake in Northpointe. It is the bank’s largest shareholder with a 32.9% stake, the filing showed.
Since 2018, Northpointe has raised over $38 million in common equity and $220 million of preferred equity and debt to fund its business.
Northpointe held $5.4 billion in assets, $4.8 billion in gross loans, $3.5 billion of deposits and $454.8 million of stockholder’s equity as of September 30 last year, its filing revealed.
The community bank posted a profit of $38.32 million in the first nine months of 2024, compared to $24.87 million in the year ago period.
Northpointe, which will list on the New York Stock Exchange under the symbol “NPB”, will use the IPO proceeds for general corporate purposes like growing its existing businesses or to redeem preferred stock.
Keefe, Bruyette & Woods, Piper Sandler, and Janney Montgomery Scott are the underwriters for the offering.
(Reporting by Arasu Kannagi Basil and Pritam Biswas in Bengaluru; Editing by Tasim Zahid and Leroy Leo)
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