CARMEL, Ind. - Merchants Bancorp (NASDAQ:MBIN), an Indiana-based bank holding company, has priced its public offering of 2.4 million shares at $43.00 per share, with potential proceeds estimated at roughly $98 million after underwriting discounts and commissions, but prior to other offering expenses. The company also granted underwriters a 30-day option to purchase up to an additional 360,000 shares at the public offering price, less the underwriting discounts and commissions.
The offering is being managed by Morgan Stanley (NYSE:MS) as the lead bookrunner, with Piper Sandler and Raymond James serving as joint bookrunners. Merchants Bancorp aims to close the offering, which is subject to standard closing conditions, on or about May 16, 2024.
Merchants Bancorp has stated that the net proceeds from this offering will be used for general corporate purposes, which include supporting the balance sheet growth of Merchants Bank of Indiana, its wholly owned banking subsidiary.
This offering is made in accordance with a registration statement on Form S-3, which was declared effective by the Securities and Exchange Commission (SEC) on August 17, 2022. Prospective investors are encouraged to read the preliminary prospectus supplement and other relevant documents filed with the SEC for a more comprehensive understanding of the company and the offering.
Merchants Bancorp, recognized as a top performing U.S. public bank by S&P Global Market Intelligence, operates multiple business segments, including Multi-family Mortgage Banking, Mortgage Warehouse Financing, and traditional community banking. As of March 31, 2024, the company has reported assets of $17.8 billion and deposits totaling $14.0 billion.
The information regarding the offering is based on a press release statement and prospective investors should be aware that this does not constitute an offer to sell or a solicitation of an offer to buy any securities.
InvestingPro Insights
As Merchants Bancorp (NASDAQ:MBIN) launches its public offering, investors may seek to understand the current financial health and market performance of the company. According to recent metrics provided by InvestingPro, Merchants Bancorp boasts a market capitalization of approximately $2.06 billion, reflecting its substantial presence in the banking sector.
The company's Price-to-Earnings (P/E) ratio stands at an attractive 7.44, which is particularly noteworthy when paired with its near-term earnings growth, indicating that the stock may be undervalued relative to its earnings potential. Furthermore, with a PEG ratio of just 0.18 as of the last twelve months leading up to Q1 2024, Merchants Bancorp shows a promising outlook for future earnings growth in relation to its share price.
InvestingPro Tips highlight several key aspects of Merchants Bancorp's performance and strategic decisions. The company has a commendable history of raising its dividend for 7 consecutive years, signaling a commitment to returning value to shareholders. Additionally, analysts have revised their earnings expectations upwards for the upcoming period, suggesting confidence in the company's financial trajectory. These insights may be particularly relevant for investors considering participation in the public offering.
Investors interested in a deeper analysis of Merchants Bancorp, including additional InvestingPro Tips, can explore the comprehensive insights available at InvestingPro. With 14 additional tips listed, investors can gain a robust understanding of the company's financial nuances. For those looking to subscribe, use coupon code PRONEWS24 to receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription, further empowering investment decisions with valuable data and analytics.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.