The owners of the Texas bank holding company Green Bancorp Inc. filed an initial public offering June 24. The company is offering shares of its common stock in hopes of raising $100 million. No details were available concerning the number of shares or their expected price. The majority of Green Bancorp is owned by three private equity firms.
Green Bancorp operates banks in the Austin, Dallas and Houston areas, plus it has an online presence. Its common stock will be offered under the symbol "GNBC." The exchange it will be listed on is not specified. Funds received from the IPO will be used for operating expenses and to fund the acquisition of SP Bancorp Inc. which Green Bancorp purchased in May for approximately $46 million. SP Bancorp owns SharePlus Bank.
In the three months ended March 31, Green Bancorp recorded a net interest income of almost $16 million, an increase of approximately 18 percent over the similar period in the previous year. Net interest income is the difference between interest earned on loans and interest paid on deposits. Net income was almost $3.5 million, an increase of about 32 percent over the previous reporting period. Green Bancorp is not the only financial company going public this year. It is joined by at least five other companies.
One of the hurdles new companies often face is raising sufficient capital to fully fund operations. When a company is considering an IPO as a source of funding, it is vital that the offering is consistent with the company's business plan. Because offerings can be complicated and are highly regulated, the services of a business law attorney are usually advisable.
Source: Reuters, "UPDATE 1-Texas bank Green Bancorp files for IPO", June 24, 2014