Northpointe Bancshares, backed by private equity firm Castle Creek Capital, is aiming for a valuation of up to $594.8m in its upcoming initial public offering (IPO) on the New York Stock Exchange in what will be the first UB bank IPO of the year, according to a report by Reuters.
The Michigan-based community bank plans to offer 7.4 million shares, while some existing shareholders will sell an additional 1.5 million shares, with a price range set between $16 and $18 per share. If priced at the top end, the IPO could raise up to $159m.
Castle Creek Capital, known for investing in community banks, acquired a 27% stake in Northpointe for $25m in 2019 and now holds roughly 33% of the bank.
Founded in 1999 by Charles Williams, Northpointe began as a mortgage-focused lender serving the Midwest, including Michigan, Ohio, and Indiana. Over the years, it has evolved into a nationwide provider of home loans and retail banking services. The bank currently manages $5.4bn in assets.
Since 2018, Northpointe has raised over $38m in common equity and $220m in preferred equity and debt, strengthening its capital base ahead of the IPO.
