Wilbur Ross-Backed Talmer Bancorp Gains After $202 Million IPO

Talmer Bancorp Inc., the U.S. Midwestern lender backed by Wilbur Ross, increased in its trading debut after raising about $202 million in an initial public offering.

The stock climbed 5.8 percent to $13.75 at 12:20 p.m. in New York for a market valuation of about $960 million, after offering almost 15.6 million Class A shares for $13 apiece. They had been marketed at $12.50 to $14.50 each. The Troy, Michigan-based company and stockholders, including WL Ross & Co., sold 22 percent of Talmer in the IPO.

The offering is the largest for a bank since BankUnited Inc. (BKU) raised $900 million in 2011, data compiled by Bloomberg show. While financials have raised more through IPOs than any other industry this year, totaling $2.8 billion, Talmer is the first bank to do an initial share sale. Royal Bank of Scotland Group Plc is readying an IPO for its RBS Citizens Financial Group Inc. U.S. unit, which is expected in 2014.

Talmer has acquired six banks since April 2010, with the latest being Michigan Commerce Bank, according to a regulatory filing. With 94 branches, the company had $4.7 billion in assets at the end of September.

Ross acquired a stake in Talmer through private placements in 2010 and 2012, and will own 18 percent after the offering, the filing showed. David Einhorn’s Greenlight Capital LLC and Goldman Sachs Group Inc. also sold shares.

Keefe, Bruyette & Woods, a unit of Stifel Financial Corp., managed the offering with JPMorgan Chase & Co. Talmer is listed on the Nasdaq Stock Market under the symbol TLMR.

To contact the reporter on this story: Leslie Picker in New York at lpicker2@bloomberg.net

To contact the editor responsible for this story: Jeffrey McCracken at jmccracken3@bloomberg.net

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