Five Star Bancorp Announces Pricing of Initial Public Offering of Common Stock

Rhea-AI Summary

On May 4, 2021, Five Star Bancorp announced the pricing of its initial public offering (IPO) of 5,265,000 shares at $20.00 per share, aiming for net proceeds of approximately $94.8 million. Trading on Nasdaq under the symbol FSBC is set to begin on May 5, 2021, with the offering closing on or about May 7, 2021. The underwriters possess a 30-day option for an additional 789,750 shares, potentially raising another $14.7 million. Five Star plans to distribute $27 million to existing shareholders and use the remaining funds to bolster its capital for growth.

Positive

• Expected net proceeds of approximately $94.8 million from the IPO will support growth strategies.
• Distribution of $27 million to existing shareholders enhances shareholder value.

Negative

• Issuing additional shares could lead to potential dilution for existing shareholders.

RANCHO CORDOVA, Calif., May 04, 2021 (GLOBE NEWSWIRE) -- Five Star Bancorp (“Five Star” or the “Company”), 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. The offering has been made solely by means of the written preliminary prospectus forming a part of the effective registration statement. Copies of the final prospectus may be obtained (when available) from Keefe, Bruyette & Woods, Inc. A Stifel Company, 787 Seventh Avenue, Fourth Floor, New York, NY 10019, Attention: Equity Capital Markets, or by calling (800) 966-1559.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any such state or jurisdiction.

About Five Star
Five Star is a bank holding company headquartered in Rancho Cordova, California. Five Star operates through its wholly owned banking subsidiary, Five Star Bank. Five Star has seven branches and two loan production offices throughout Northern California.

Forward-Looking Statements
This press release contains “forward-looking statements.” These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of Five Star’s beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan” or words or phases of similar meaning. Five Star cautions that the forward-looking statements are based largely on Five Star’s expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond Five Star’s control. Such forward-looking statements are based on various assumptions (some of which may be beyond Five Star’s control) and are subject to risks and uncertainties, which change over time, and other factors which could cause actual results to differ materially from those currently anticipated. New risks and uncertainties may emerge from time to time, and it is not possible for us to predict their occurrence or how they will affect us. If one or more of the factors affecting Five Star’s forward-looking information and statements proves incorrect, then Five Star’s actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained in this press release. Therefore, Five Star cautions you not to place undue reliance on Five Star’s forward-looking information and statements. Five Star disclaims any duty to revise or update the forward-looking statements, whether written or oral, to reflect actual results or changes in the factors affecting the forward-looking statements, except as specifically required by law.

Media Contact:
Heather Luck, CFO
Five Star Bancorp
hluck@fivestarbank.com
916.626.5008

Shelley Wetton, CMO
Five Star Bancorp
swetton@fivestarbank.com
916.284.7827

FAQ

What are the details of the Five Star Bancorp IPO on May 4, 2021?

Five Star Bancorp priced its IPO at $20.00 per share for 5,265,000 shares, targeting approximately $94.8 million in net proceeds.

When will Five Star Bancorp shares start trading under the symbol FSBC?

Shares are expected to begin trading on May 5, 2021, on the Nasdaq Global Select Market.

What will Five Star Bancorp do with the proceeds from the IPO?

The proceeds will fund a $27 million cash distribution to existing shareholders and enhance the bank's capital for growth.

What is the impact of the IPO on existing shareholders?

While existing shareholders will receive a cash distribution, the issuance of new shares may dilute their ownership.