Malvern Federal Bancorp (MLVF) in Paoli, Pa., will raise up to roughly $36.4 million by converting to a 100% stock-owned company from a mutual holding company.

The $650 million-asset company will sell between 2.3 million and 3.2 million shares of common stock at $10 each, Malvern said Wednesday. It also may increase the number of shares sold in the offering by up to 15%, to a total of 3.6 million. The shares being sold represent the 55.5% interest that Malvern Federal Mutual Holding Co. owns in Malvern Federal Bancorp.

After the conversion and offering, shareholders of the current company will have their common stock exchanged for shares in the new company. The exchange will result in current public shareholders owning roughly the same percentage in the new company as they currently own.

Malvern Bancorp is the new proposed holding company for Malvern Federal Savings Bank.

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