CapStar Financial Holdings in Nashville, Tenn., expects to raise net proceeds of $16.6 million in an initial public offering that it plans to spend on growth and other initiatives — perhaps including M&A.
Beth Alexander, a spokeswoman for the $1.3 billion-asset company, told American Banker on Thursday that CapStar expects to use the funds for "growth" and added that "we're always looking for acquisition targets that seem like a good fit."
Investors will be offered 2.6 million shares of common stock at $15 apiece. About half of those shares will be sold by the company and the rest by existing stockholders. Shares will trade on the New York Stock Exchange under the symbol CSTR.
The underwriters have the option to purchase from the company up to an additional 387,750 of common stock within 30 days from the start of their sale on Thursday, which would add $5.8 million to the IPO's gross valuation of $39 million.
Keefe, Bruyette & Woods and Sandler O'Neill are the joint book-running managers; Raymond James & Associates and Stephens are co-managers.
The IPO is a little smaller than first expected. CapStar initially disclosed in an August regulatory filing that its shareholders Corsair Capital in New York, North Dakota State Retirement and Investment Office in Bismarck and GSD Family Investments in Nashville would sell shares in an IPO that was expected to raise up to $46 million. Richard Thornburgh, chairman of Credit Suisse Holdings USA and vice chairman of Credit Suisse Group, is a CapStar director and a member of Corsair's investment committee.