Thursday, July 27, 2017

Commercial Bank RBB Bancorp Prepares For IPO


RBB Bancorp is set to IPO on Wednesday (7.26) and plans to raise $82.8 million through the offer of 3 million shares at an expected price range of $22-24 per share.
Assuming RBB Bancorp prices at the mid-point of its proposed range, it would command a fully diluted market cap value of $373 million.
We are hearing that there is solid demand for this deal.
We recommend investors buy this IPO.


LA-based commercial bank, Royal Business Bank (RBB) will make its market debut on Wednesday (7.26) and expects to raise 82.8 million pricing its shares between $22 and $24. The bank is offering 2.1 million shares with 892,000 shares being offered by selling shareholder. The company intends to contribute approximately $25 million of its net proceeds to Royal Business Bank, its wholly-owned banking subsidiary, and to use the rest for general corporate purposes such as growth initiatives like future acquisitions.
Assuming shares price at the mid-point range, RBB Bancorp will have a market cap value of $373 million.
Underwriters for the IPO include: Sandler O'Neill, Keefe Bruyette Woods, Stephens Inc., FIG Partners.
We previewed the deal on our IPO Insights Platform.

Company Background

RBB Bancorp was founded in 2008 with the mission of providing commercial banking services to first generation immigrants, initially concentrating on Chinese immigrants, and now, marketing to other Asian ethnicities as well. The bank’s management team has utilized its strong local community ties as well as relationships and credibility with federal and California bank regulatory agencies to build up its client base and operations.
RBB Bancorp serves all ethnicities. However, its marketing focus was initially on first generation Chinese-Americans who favored working with banks which conducted business in their native languages.

Source: Dion, Don. "Commercial Bank RBB Bancorp Prepares For IPO". Seeking Alpha. 25 July 2017. Web. 27 July 2017.

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