Merchants Bancorp (MBIN) has set the price for its underwritten public offering of 2.4 million common stock shares, boasting no par value, at $43.00 each. On Monday, MBIN closed the regular trading period at $47.61, marking an increase of $0.17 or 0.36%. However, the stock saw a decrease of $3.92 or 8.23% in the after-hours trading.
The company is anticipating a net gain of approximately $98.04 million from the offering. This estimate is made after accounting for underwriting discounts and commissions but prior to subtracting company-payable offering expenses. Furthermore, the underwriters have been offered the chance to buy up to an additional 360,000 common stock shares at the public offering price for the next 30 days, which will also be subject to underwriting discounts and commissions.
Merchants Bancorp intends to utilize the net proceeds from this offering for various corporate purposes, including to bolster the Bank’s balance sheet growth. The closing of the offering is projected for on or around May 16, 2024.
