Missouri bank launches IPO in search of acquisition

Core Viewpoint - Central Bancompany has launched an initial public offering (IPO) aiming to raise approximately $400 million to facilitate potential acquisitions in Texas, Oklahoma, or Colorado [1][2]. Company Overview - Central Bancompany, based in Jefferson City, Missouri, has around $19 billion in assets and operates in Missouri, Oklahoma, Kansas, Colorado, and Florida [2]. - The company is targeting banks with over $2 billion in assets, a strong deposit base, and high credit quality for potential acquisitions [2]. IPO Details - The bank plans to offer 17.8 million shares of Class A common stock, priced between $21 and $24, with an option for underwriters to purchase an additional 2.7 million shares [3]. - As of the latest market close, Central's stock was trading at $21 [3]. Market Context - Central is the third and largest bank to go public this year, amidst a backdrop of economic uncertainty and a cautious approach from the banking industry towards IPOs [4]. - Investor interest in bank stocks remains relatively low, but IPOs may stimulate demand [4][5]. Acquisition Strategy - Central has identified about 30 potential target banks for acquisition, indicating a strategic focus on growth through mergers [9]. - The bank's last acquisitions occurred in 2019, and it has a 24% average deposit market share, attributed to its successful acquisition strategy [7]. Future Plans - The company intends to invest in technology, enhance treasury and wealth management offerings, and improve core and data management systems while preparing for acquisitions [10]. - The IPO may not necessarily indicate a trend of more banks going public, as investor demand is still muted [9].