Mid-Southern Savings Bank in Salem, Ind., could raise as much as $22.3 million as part of its conversion to a fully stock-owned company.
The $177 million-asset company disclosed in a regulatory filing on Friday that it plans to sell 71% of its stock at $10 a share. As part of the conversion, Mid-Southern’s previous holding company will merge into Mid-Southern Bancorp and its shares will be retired.
By converting to a public company, Mid-Southern hopes to strengthen its capital position and pay dividends to shareholders without diluting investors' stock ownership interest.
Mid-Southern said it would use proceeds to support lending activities and to develop other products and services. The bank said the proceeds could also be used to buy banks or branches, although it has no immediate plans in place.
Keefe, Bruyette & Woods is the sole book-running manager.