With as much as $196.6 million headed to its war chest, Old National Bancorp in Evansville, Ind., could be striking deals for failed banks soon.
The $8 billion-asset company is among a growing number of companies to raise capital over the past month, citing the potential for deals with the Federal Deposit Insurance Corp.
Old National announced late Tuesday that it upsized its stock offering because of demand and that it expects the net proceeds to be at least $171 million. It had set out to raise $150 million when it announced the offering Monday.
The shares priced at $10 each, an 11.3% discount from where the stock had closed before the offering announcement.
The company said that it would use the capital for growth, including FDIC-assisted acquisitions.
Stephen Geyen, an analyst at Stifel, Nicolaus & Co. Inc., said in a research note that Old National is most likely to seek deals in Indiana, Kentucky, Ohio and possibly southern Illinois.
