Five Star Bancorp (FSBC) Prices 5.265M Share IPO at $20/Sh

May 5, 2021 5:41 AM EDT

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Five Star Bancorp (NASDAQ: FSBC), announced today the pricing of the initial public offering of 5,265,000 shares of its common stock, at a public offering price of $20.00 per share for expected net proceeds to the Company, after deducting the underwriting discount and estimated offering expenses, of approximately $94.8 million. The shares are expected to begin trading on Wednesday, May 5, 2021 on the Nasdaq Global Select Market under the symbol “FSBC.” The offering is expected to close on or about May 7, 2021, subject to the satisfaction of customary closing conditions.

The Company has granted the underwriters a 30-day option to purchase up to an additional 789,750 shares of common stock, at the initial public offering price of $20.00 per share, minus the underwriting discount. If the underwriters’ option is exercised in full, it is expected to result in additional net proceeds of approximately $14.7 million after deducting the underwriting discount and estimated offering expenses.

Five Star intends to use the net proceeds from this offering to fund a cash distribution to Five Star’s existing shareholders following the completion of the offering (purchasers of common stock in the offering will not be entitled to receive any portion of this distribution) in the amount of $27.0 million, subject to certain adjustments, and to use the remainder of the net proceeds, which Five Star expects to be approximately $67.8 million (excluding the underwriters option to purchase additional shares), to increase the capital of the Bank in order to support Five Star’s organic growth strategies, including expanding Five Star’s overall market share, to strengthen Five Star’s regulatory capital and for working capital and other general corporate purposes.

Keefe, Bruyette & Woods, Inc. is acting as bookrunner for the offering. Stephens Inc. and D.A. Davidson & Co. are acting as co-managers.

A registration statement relating to these securities has been filed with the U.S. Securities and Exchange Commission (the “SEC”) and was declared effective by the SEC on May 4, 2021.



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