Community bank CoastalSouth Bancshares eyes $281 million valuation in US IPO

June 24 (Reuters) - Private equity-backed CoastalSouth Bancshares COSO.PK is targeting a valuation of up to $281.4 million in its initial public offering in the United States, the community bank said on Tuesday.

WHY IT'S IMPORTANT

With the 2023 regional banking crisis in the rearview mirror, analysts expect an uptick in banking IPOs in the near-future after years of subdued activity.

Castle Creek-backed Northpointe Bancshares NPB.N and the Republican Party's top bank, Chain Bridge Bancorp CBNA.N, have gone public in New York since October 2024.

CONTEXT

Founded in 2004, CoastalSouth currently operates 11 retail banking branches in the Lowcountry of South Carolina, as well as the Savannah and Atlanta markets in Georgia.

The bank has $2.2 billion in assets and competes against the likes of SouthState SSB.N and South Atlantic Bancshares SABK.PK.

In 2017, CoastalSouth raised $62 million to bolster its capital position. The recapitalization was led by investment firms Patriot Financial Partners, EJF Capital and GCP Capital Partners.

BY THE NUMBERS

Atlanta, Georgia-based CoastalSouth and some of its existing shareholders are seeking up to $61.1 million by offering 2.6 million shares priced between $21.50 and $23.50 apiece.

CoastalSouth is marketing 1.7 million shares, while some backers are parting ways with 900,000 shares.

The bank currently trades in the over-the-counter market. Its last reported sale price was $19.40 apiece.

WHAT'S NEXT

CoastalSouth will list on the New York Stock Exchange under the symbol "COSO".

Piper Sandler and Stephens are the underwriters for the offering.

The bank plans to use the proceeds for general purposes, which may include debt repayment as well as funding branch expansion and acquisitions.