ViewPoint Bank in Plano, Tex., a former credit union that converted to a savings bank in December, said that it plans to raise up to $110 million in an initial public offering.
The IPO would be the largest ever for a converted credit union.
The $1.4 billion-asset bank plans to establish a mutual holding company, which would control 55% of the shares, and sell about 11 million shares to the public, according to documents filed with the Securities and Exchange Commission.
As many as 1 million shares, valued at $10 million, would be reserved for top managers and directors as either restricted stock grants or awards under an employee stock ownership plan. Another 1 million options would be reserved for the same insiders.
The eight directors, including chief executive Gary Base, plan to buy stock in the IPO, according to the SEC filing. ViewPoint customers who had at least $50 of deposits as of Dec. 31, 2004, when it was still a credit union, would have first priority to buy shares, as many as 40,000 each. Second priority would go to tax-qualified employee plans; depositors as of March 31, 2006, would have third priority.
The remaining shares, expected to be offered at $10 each, would be sold to the public. ViewPoint said that proceeds from the offering would be used to expand its mortgage program, buy investment securities, or finance acquisitions. Keefe, Bruyette & Woods Inc. is underwriting the offering.
