Guaranty Federal Bancshares (GFED) in Springfield, Mo., plans to raise roughly $15 million in an initial public offering.

The company has priced 1.3 million shares of common stock at $11.50 each, according to a Tuesday press release. Guaranty expects to complete the share sale on March 7.

The $619 million-asset Guaranty plans to use proceeds from the offering to redeem the remaining 12,000 shares of preferred stock outstanding that are tied to the Troubled Asset Relief Program. The rest of the funds will be used to boost capital and for general corporate purposes, including potential acquisitions, according to the release.

Raymond James & Associates is the underwriter and sole book running manager for the offering. The company will have a 30-day option to purchase up to an additional 195,652 shares to cover any over-allotments.

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