Union-owned Amalgamated launches initial public offering
Amalgamated Bank in New York is going public.
Investors are selling almost 7 million shares of common stock at $15.50 each, the $4.2 billion-asset bank said on Wednesday. Underwriters can sell another 1.1 million shares of stock if there is enough demand.
All of the stock, valued at about roughly $120 million, is being sold by shareholders. Amalgamated will not receive any proceeds from the offering.
Workers United and affiliates are reducing their stake from 55.2% to 41% as a result of the IPO. Funds associated with W.L. Ross & Co. are lowering their stake from 16.5% to 12.6%. The holdings for funds tied to Yucaipa Companies are falling from 16.5% to 13.5%, Amalgamated said in the offering's circular.
Amalgamated, which bought New Resource Bank in San Francisco earlier this year, also said in its circular that it will restructure its board by reducing its members from 16 to 13.
The offering's joint book-running managers include Barclays, J.P. Morgan and Keefe, Bruyette & Woods. Piper Jaffray, Raymond James and Sandler O'Neill are co-managers.