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Highlights
- VersaBank is planning an initial public offering on the Nasdaq Global Select Market Composite (NQGS).
- The underwriting for the VersaBank IPO could be led by Raymond James & Associates.
- VersaBank's shares trade on the Toronto Stock Exchange (TSX) and they will continue to do so under the symbol 'VB'.
VersaBank, Canada's first financial institution to go fully digital, is planning to list its shares in the US stock market. Established in 1980, VersaBank was founded as a trust company, and it is a chartered bank.
At the moment, VersaBank's shares trade on the Toronto Stock Exchange (TSX) and they will continue to do so under the symbol 'VB', according to the bank's statement. Over the years, VersaBank has successfully emerged as an efficient branchless financial institution that addresses an underserved segment of the Canadian banking system.
VersaBank IPO's significant details:
The first only digital bank is planning an initial public offering on the Nasdaq Global Select Market Composite (NQGS) and will likely trade under the stock symbol 'VBNK'.
According to the bank's press release, the IPO’s net proceeds would be used for banking purposes and the raised funds will qualify as Common Equity Tier 1 capital.
According to reports, the underwriting agreement is not fully commenced, and the prize and size of the offering would be determined after the commencement.
Also Read: Economical Insurance IPO: When can you buy the Canadian firm’s stock?
The underwriting for the IPO could be led by Raymond James & Associates likely along with Keefe, Bruyette & Woods.
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VersaBank’s performance
VersaBank’s stock has performed well on the TSX in the recent past. The VB stock surged 55.5 per cent year-to-date (YTD) and 94.5 per cent in the last 12 months.
On September 1, the digital bank declared cash dividends for the quarter ending October 31. The shareholders will be paid a dividend of C$ 0.025 per common share and C$ 0.1693 per series 1 preferred share of the bank.
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In the third quarter of 2021, VersaBank’s revenues increased by 27 per cent year-over-year (YoY) to C$ 15.7 million. Meanwhile, the net income increased to C$ 5.4 million in Q3 2021 from C$ 4.3 million in the same quarter of the previous year.
VersaBank is also focussing on enhancing its capabilities and security as it has developed a fully owned cyber security subsidiary known as DRT Cyber. It is headquartered in Washington, DC., and aims to offer solutions for data protection and cyber security.
Bottom line
If the IPO happens, retail investors may try to get hold of the pre-IPO shares as generally the price of these shares increases when they get listed on a stock exchange. However, sometimes the stock could start trading at lesser prices in comparison to the prices of the pre-IPO stock.
Hence, it is essential to research the upcoming stock and potential interest before investing in pre-IPO shares.
