FinWise Bancorp IPO: How to buy the stock?

Highlights

• FinWise Bancorp has announced its initial public offering price of US$10.50 per share.
  
  
• The company is offering 3,500,000 shares to investors.
  
  
• For the nine months ended on Sep 30, 2021, it had total assets of US$338.31 million.

FinWise Bancorp has announced the pricing of its initial public offering of common stocks. The FinWise IPO is among the major debuts in the US market this week.

FinWise Bancorp is a holding company based in Murray, Utah. It offers financial services through its wholly-owned subsidiary, FinWise Bank, and is founded in 1999.

Currently, the bank operates one full-service banking location in Utah and serves as a lender nationwide. It also takes deposits from individual customers and small businesses.

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FinWise Bancorp stock offerings and pricing

The company is offering 3.5 million shares of its common stock for investors. In addition, it would provide a 30-day option for the underwriters to buy an additional 525,000 shares of its common stock at the initial public offering (IPO) price, less the underwriting discount.

The initial public offering price will be US$10.50 per share, the company announced on Thursday. It is expected that the offering price would provide gross proceeds of around US$36.8 million to the bank.

In addition, if the underwriters' option is exercised in full, it is expected to provide net proceeds of US$5.1 million after subtracting the underwriting discount and estimated offering expenses.

Notably, the firm's net proceeds, after deducting the discount and estimated offering expenses, are expected to be about US$31 million.

The company is expected to start trading on Nasdaq Global Market (NASDAQ) on Nov 19, 2021, under the ticker symbol "FINW".

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FinWise Bancorp financials

As of and for the nine months ended on September 30, 2021, the company had total assets of US$338.31 million, compared to US$318.34 million in the same period of the previous year. For the period, the firm had cash and cash equivalents of US$68.10 million, compared to US$32.16 million for the nine months ended on September 30.

The company reported a net income of US$21.47 million for the nine months ended on September 30 compared to US$6.58 million in the year-ago period.

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Bottomline

According to the company's statement, FinWise plans to use its net proceeds for the initial public offering to fund the organic growth, including the development of operating infrastructure, and for other general purposes like future acquisitions. The joint book-running managers for the offering would be Piper Sandler & Co. and Stephens Inc.