Spirit of Texas Bancshares in Houston is planning to raise $40 million in an initial public offering.

The $1 billion-asset company said in a prospectus filed Thursday that it plans to sell 1.9 million shares of common stock for $20 to $22 a share. The company, which will list its shares on the Nasdaq, said it plans to set pricing on May 3.

The announcement is the latest positive news to come out of Houston since Hurricane Harvey severely flooded the area last summer.

The company could increase the size of the offering by 15% if there is enough demand.

Spirit of Texas said it plans to use the net proceeds for general corporate purposes that could include the support of organic growth, pursuing potential acquisitions and repaying outstanding debt.

Spirit of Texas, which was founded in 2008, mostly lends to small and midsize businesses in Texas. The company, which has bought seven bank, said it would consider acquiring deposit-rich community banks around Houston, Dallas and Austin.

About 18% of Spirit of Texas' stock is held by executives and directors, including a roughly 4% stake by Dean Bass, the company's chairman and CEO, the prospectus said.

Stephens and Keefe, Bruyette & Woods are the deal's joint bookrunners. Piper Jaffray and Sandler O’Neill are co-managers.

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