Malvern Federal Savings Bank in Paoli, Pa., said Friday that it is cutting the number of shares it plans to sell in an initial public offering by 15%, because of the declining values for thrift stocks.
The $542.2 million-asset mutual thrift said it would return any subscription funds it has received so far and then resolicit orders to purchase shares once it finalizes a revised appraisal.
Malvern's plan is to sell 43% of its stock and form a mutual holding company to retain a majority stake.
The new appraisal would require a minimum of 1.96 million shares to be sold to complete the offering.
This is not the first time Malvern has downsized its offering as a result of falling thrift stock prices.
According to a prospectus it filed last month with the Securities and Exchange Commission, the previous appraisal had set the minimum requirement at 2.3 million shares, or roughly 10% lower than one in early December. The filing said that as of Jan. 25 the SNL index for all publicly traded thrifts had declined 12.1% since the December appraisal, and that Malvern's appraiser, RP Financial LC, concluded the adjustment was necessary because of market conditions.
Malvern said it expects to complete its offering in the second quarter.
