LA-based commercial bank, Royal Business Bank (RBB) will make its market debut on Wednesday (7.26) and expects to raise 82.8 million pricing its shares between $22 and $24. The bank is offering 2.1 million shares with 892,000 shares being offered by selling shareholder. The company intends to contribute approximately $25 million of its net proceeds to Royal Business Bank, its wholly-owned banking subsidiary, and to use the rest for general corporate purposes such as growth initiatives like future acquisitions.
Assuming shares price at the mid-point range, RBB Bancorp will have a market cap value of $373 million.
Underwriters for the IPO include: Sandler O’Neill, Keefe Bruyette Woods, Stephens Inc., FIG Partners.
We previewed the deal on our IPO Insights Platform.
Company Background
RBB Bancorp was founded in 2008 with the mission of providing commercial banking services to first generation immigrants, initially concentrating on Chinese immigrants, and now, marketing to other Asian ethnicities as well. The bank’s management team has utilized its strong local community ties as well as relationships and credibility with federal and California bank regulatory agencies to build up its client base and operations.
RBB Bancorp serves all ethnicities. However, its marketing focus was initially on first generation Chinese-Americans who favored working with banks which conducted business in their native languages.
(Company Website)
The bank completed two acquisitions. In May 2013, it acquired Los Angeles National Bank, adding $190.7 million in total assets and $162.0 million in total deposits, and in February 2016, it acquired TFC Holding Company, adding $469.9 million in total assets and $405.3 million in total deposits.
The company’s services include a full range of depository accounts, trade finance, 1-4 single family residential loans, SBA7A and 504 loans, industrial and commercial loans, business lines of credit and loans, investor and commercial real estate loans, mobile banking, electronic banking, and remote deposit.
