River City Bank is scheduled to make its Nasdaq debut later today following the completion of an initial public offering that raised $121.5 million. The bank reduced the size and pricing of the offering prior to pricing, ultimately selling 2.7 million shares at $45 apiece on Wednesday evening.
That final tally marked a retreat from the company’s earlier plan to offer 2.75 million shares with an anticipated price band of $48 to $51 per share. All shares in the completed transaction were sold by two longtime shareholders who are connected to the family of the bank’s founder, Jon Kelly.
River City Bank reported total assets of $6 billion as of June 30, a figure disclosed as part of the offering information. The underwriting group was led by Raymond James and Keefe, Bruyette & Woods, which acted as joint book-running managers. D.A. Davidson and Stephens participated as co-managers on the deal.
Rather than using a conventional S-1 registration filed with the U.S. Securities and Exchange Commission, the deal closed under an FDIC offering circular. The offering circular route is noted in the offering materials and was the vehicle used to complete the IPO.
The transaction’s structure - a smaller share count and a lower-than-initially-proposed price range - resulted in the $121.5 million raised at pricing. The sale being limited to shares from two long-term holders tied to the founder’s family was the source of the entire float offered in the IPO.
Market participants will watch the bank’s first day of Nasdaq trading to see how the share price responds to the market’s reception. The particulars of the deal, including the managers involved and the regulatory route taken, are part of the public record and were disclosed in connection with the offering.
Summary
River City Bank completed a downsized IPO, selling 2.7 million shares at $45 each to raise $121.5 million. The offering was executed through an FDIC offering circular and consisted solely of shares sold by two longtime shareholders linked to the founder's family. The bank reported $6 billion in assets as of June 30.