NUVO Bank in Springfield, Mass. Plans to raise up to $5 million in capital.
The $110.8 million-asset bank said Friday that it had received regulatory approval to sell common stock to the public. For $9, investors will be able to buy two shares of common stock and a warrant to buy another share for $5 in the next four years.
The bank, which opened in 2008, hopes to bring in $3 million to $5 million from the offering.
"We need to raise capital to continue our growth pattern, which has been about 28% annually the last three years," M. Dale Janes, NUVO's chief executive, told American Banker. "We think we are in a very good position to raise the money, we’ve got a very good track record."
NUVO focuses on the needs of local small businesses and focuses on loans of $500,000 to $750,000, Janes said.
While terms of the offering allow existing investors to buy a sufficient number of shares to maintain their ownership level, Janes says he anticipates there will be "plenty of stock" available for the public.
