BNP Paribas-Backed First Hawaiian Aims for $485 Million IPOby and
Honolulu-based bank will list on Nasdaq under ticker FHB
High end of marketed range would give value of $3.2 billion
The company is offering 21.1 million shares from $21 to $23 apiece, according to a filing Tuesday with the U.S. Securities and Exchange Commission. Including an overallotment of an additional 3.16 million shares to underwriters, First Hawaiian could raise as much as $557.8 million. BNP Paribas will retain control of about 85 percent of the company after the listing.
Based on the 139.5 million shares of common stock to be outstanding after the offering, the company would have a market value of $3.2 billion at the high end of the marketed range. That’s down from previous projections that put the bank’s value at as much as $5 billion, people familiar with the matter said last week.
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, which was initially filed July 8.
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 is still largely focused in its home state, 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.
Its closest comparable company is Honolulu-based Bank of Hawaii Corp., the people familiar with the matter said last week, asking not to be identified because the matter is private. That bank has a market value of about $3 billion after the stock gained 11 percent this year.
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. Total assets were $19.1 billion at the end of March, the prospectus shows.
First Hawaiian will 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.
Goldman Sachs Group Inc., Bank of America Corp. and BNP are leading the offering.