(Reuters) – Talmer Bancorp Inc, backed by billionaire investor Wilbur Ross, priced its initial public offering of common shares at between $12.50 and $14.50 per share, valuing the company at up to $1 billion.
The offering of 15.6 million shares would raise up to $226 million.
Ross, who also serves on the board of Talmer, has a stake of more than 24 percent in the bank holding company through WL Ross & Co.
Manulife Asset Management (US) LLC and David Einhorn’s hedge fund Greenlight Capital Inc are the other notable shareholders with a stake of more than 5 percent each in the company.
Talmer has three subsidiary banks – Talmer Bank and Trust, First Place Bank, and Talmer West Bank.
These banks operate through 94 branches in Michigan, Ohio, Indiana, Wisconsin, Illinois, Nevada and New Mexico and 13 lending offices located primarily in the Midwest.
Keefe, Bruyette & Woods and JP Morgan are underwriting IPO.
Net proceeds from the offering will be used to repay debt, Talmer said in a preliminary prospectus lodged with the U.S. Securities and Exchange Commission.
The company intends to list its common stock on the Nasdaq under the symbol “TLMR.”
Talmer’s net income rose to $86 million in the nine-month period ended Sept. 30, from $14.23 million a year earlier.
Net interest income, the difference between what a bank earns from loans and pays out for deposits, rose to $128.7 million from $72.2 million.