Green Point Savings Bank, the nation's largest mutual thrift, successfully sold roughly $800 million of stock in its initial public offering Wednesday.
However, the deal is unlikely to close before next year because the New York State Banking Department plans to hold hearings on the thrift's appraisal, disclosure, and proxy solicitation.
The state agency hasnot yet set a date for the hearings, and they are unlikely to conclude this month.
Hostile Takeover Bid
The deal was thrown into the limelight after Republic New York Corp.'s attempt last month at a hostile takeover.
Green Point's lead underwriter said that while subscription orders won't be tallied until today the deal has sold briskly.
"We expect it to be fully subscribed," said Mark B. Cohen, managing director of Adams Cohen Securities Inc., Great Neck, N.Y. "Our sense from the branches is that we have gotten overwhelming support from Green Point's depositors."
The New York City depositor-owned thrift, which has $6.4 billion in assets, accepted investors' checks until noon Wednesday. It is mailing them confirmation that their orders were received, rather than sending the stock certificates.
The money collected is being held in speciall, interest-bearing accounts untill regulators allow Green Point to distribute the stock.
One thrift lawyer said it was not surprising that Green Point' stock sold well because the market for thrift stocks has been hot.
"It would be hard to imagine that a well-capitalized institution would not sell out; good lord, insolvent institutions have managed to blow out deals in this market."
Depending on how many investors subscribed for the stock, net proceeds will be between $583 million and $786 million in stock sold at $11.10 to $15 per share.
Green Point depositors were allowed to buy the stock before outside investors were given the chance.