The Raleigh-based parent company of Paragon Bank on Wednesday announced that its stock will be sold for $34 a share in a previously disclosed initial public offering.
The common stock has been approved for listing on the Nasdaq Capital Market and is expected to begin trading Thursday under the symbol “PBNC,” Paragon said. It plans to offer 736,000 shares in the IPO, which is expected to close around June 21.
Paragon has three locations, in Raleigh, Charlotte and Cary, and offers private and commercial banking for small and mid-size businesses, professional firms and nonprofits.
The company announced last month that it had filed a registration statement with the Securities and Exchange Commission relating to the proposed IPO.
Although the bank’s shares are currently traded over the counter, its stock sale actually is an IPO because the bank was initially funded by private investors and it didn’t issue any new stock when its shares began trading over the counter.
If Paragon hits its sales volume and price targets, its market capitalization – the total value of its outstanding shares – would exceed $175 million.
Paragon would receive $22.9 million in net proceeds, after deducting expenses associated with the offering, at the IPO price of $34. The bank plans to use the money it raises to support its growth and to pay off a $4.2 million loan.
Paragon Bank, which has $1.3 billion in assets, has been operating since 1999. Last year it generated $11.2 million in net income, up 41 percent from 2014.
David Ranii of the (Raleigh) News & Observer contributed.