Independent Bank Corp. in Ionia, Mich., has called off a planned a public offering in which had intended to raise up to $110 million of fresh capital.
Almost a year to the day after first filing its application to pursue a stock offering, the $2.5 billion-asset company said in a Securities and Exchange Commission filing Wednesday that it has withdrawn the request and may consider a private stock sale instead.
Independent gave no reason for its change of heart, but it is worth noting that the company's capital ratios have improved since it first announced plans for the public offering on July 10, 2010. At March 31, its total risk-based capital ratio was 11.16%, up from 10.55% nine months earlier, according to Federal Deposit Insurance Corp. data.
Investors were clearly pleased with the decision to call off the stock offering, which would have diluted the value of existing shares. In heavy trading Wednesday, Independent's shares rose 30%, to $2.64.