Shares of Five Star Bancorp (NASDAQ:FSBC) stock began trading on Wednesday following the company’s initial public offering (IPO) announcement. And there is plenty of information to pick through regarding the Five Star Bancorp IPO.
The California-based firm is a bank holding company that “operates through its wholly owned banking subsidiary, Five Star Bank.” That said, the company currently has seven branches and two loan production offices in the northern part of the state.
So, what do potential FSBC stock investors need to know about the IPO? Let’s dive in and find out more.
- Five Star Bancorp said it is offering more than 5.2 million shares of common stock.
- FSBC stock began trading at $20 per share.
- After deducting the underwriting discount and estimated offering expenses, the firm expects net proceeds of approximately $94.8 million from the IPO.
- According to the release, Five Star “has granted the underwriters a 30-day option to purchase up to an additional 789,750 shares of common stock, at the initial public offering price of $20.00 per share, minus the underwriting discount.”
- This could add up to $14.7 million more net proceeds after some deductions.
- The firm said it plans on using the money from the IPO “to fund a cash distribution to Five Star’s existing shareholders following the completion of the offering… .”
- This distribution will amount to $27 million.
FSBC stock is now available to investors, and is up nearly 17% already on Wednesday.
On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Nick Clarkson is a web editor at InvestorPlace.
