Ex-CU In Texas Plans To Raise Up To $110 Million
ViewPoint Bank, known until December as Community CU, said last week it plans to raise up to $110 million with an initial public offering of as many as 11 million shares, the biggest IPO yet for a converted credit union. Plans call for the $1.4-billion ex-credit union to establish a mutual holding company that will continue to control 55% of the shares, leaving a minority interest in public hands, according to documents filed with the SEC. As many as one million shares, valued at $10 million, will be reserved for top managers and directors of the former credit union as either restricted stock grants or awards under an employee stock ownership plan; while another one million options will be reserved for the same insiders. The eight directors, including CEO Gary Base, all plan to buy stock in the IPO. Base plans to buy 30,000 shares. Under the offering, Community CU members who had at least $50 on deposit as of Dec. 31, 2004 will have first priority to buy shares, as many as 40,000 each. Second priority will go to tax-qualified employee plans. Third priority to depositors as of March 31, 2006. Remaining shares will be sold to the public at an expected $10 each. The offering is being underwritten by Keefe, Bruyette & Woods, which has underwritten almost every other converted credit union IPO.