Chain Bridge Bancorp, a lender popular with Republicans since its inception, is seeking a valuation of up to $167 million in its initial public offering in the United States.
The IPO, which is relatively unusual in the banking sector, comes just about a month before the U.S. presidential election.
The McLean, Virginia-based bank, which has just one branch and 84 employees, has beaten off larger financial rivals and become an indispensable partner for political work.
Strong debuts from recently public companies have also boosted the IPO market, particularly for profitable companies.
Chain Bridge is seeking to raise up to $48.1 million through the sale of 1.85 million shares priced between $24 and $26 apiece, the company said Monday.
Founded by former Republican Senator Peter Fitzgerald, Chain Bridge has worked with the campaign of every Grand Old Party presidential candidate since John McCain in 2008, Reuters (link) reported in July.
The bank’s fortunes are closely linked to the party. Chain Bridge has warned in its filings that “any event that negatively impacts the Republican Party… could result in significant deposit outflows.”
Still, the bank’s high credit quality could appeal to investors at a time when concerns about bad loans have distressed many industry players. Chain Bridge says it has had no non-performing loans in the last 12 years.
The lender plans to use the proceeds from the IPO for general corporate purposes, such as: B. to finance its expansion and repay debts. After the IPO, the Fitzgerald family will own nearly 48.72 percent of the combined voting rights.
Piper Sandler, Raymond James and Hovde Group are the underwriters for the IPO.
Chain Bridge will seek a listing on the New York Stock Exchange under the symbol “CBNA.”
