- Honolulu-based bank said to set terms in next couple of weeks
- Bank filed initial prospectus for U.S. offering July 8
First Hawaiian Inc., the Honolulu-based bank owned by BNP Paribas SA that filed for an initial public offering this month, plans to set terms and sell its shares in the next couple of weeks, people with knowledge of the matter said.
The terms of the offering will imply a market value for the bank of $3 billion to $4 billion depending on where comparable lending institutions are trading, said the people, who asked not to be identified because the information is private. Previous projections put the bank’s value at as much as $5 billion, the people said.
The closest comparable company is Honolulu-based Bank of Hawaii Corp., the people said. Bank of Hawaii climbed 8.6 percent this year through Thursday’s close, giving it a market value of about $2.9 billion.
A representative for BNP in New York declined to comment.
First Hawaiian filed its initial prospectus on July 8 with a placeholder of $100 million, an amount used to calculate fees that usually changes.
Paris-based BNP has been working to revamp the bank to boost profit and free up capital. Taking First Hawaiian public is another step in that direction, as BNP is both selling the shares and receiving all the proceeds from the deal.
First Hawaiian was the first successful banking partnership in the Kingdom of Hawaii after being founded in 1858 as Bishop & Co., according to the IPO prospectus.
It’s still largely focused in Hawaii, where it has 57 branches. At the end of March, 83 percent of deposits and 70 percent of loans were based in the state. Three branches are located in Guam and two in Saipan.
Total assets were $19.1 billion at the end of March, the prospectus shows.
Following a slow start to the year for U.S. IPOs, there are some bright spots. Drugmaker Patheon NV raised $640 million this week, while Japanese messaging company Line Corp. raised more than $1 billion in the year’s biggest technology IPO earlier this month.
First Hawaiian posted net income of $213.8 million last year, down 1.3 percent from 2014. Net interest income climbed 3.9 percent in 2015 to $461.3 million.
First Hawaiian plans to list on the Nasdaq Global Select Market under the symbol FHB. The bank is an emerging growth company as defined in the Jumpstart Our Business Startups Act of 2012. It may take advantage of the reduced reporting requirements allowed under that definition, the filing shows.