24/7 Wall St.
09-09-2008, 11:20 AM
24/7 Wall St. Daily News
http://www.247wallst.com/images/2008/09/09/signature_bank_logo_2.gif (http://247wallstreet.typepad.com/.shared/image.html?/photos/uncategorized/2008/09/09/signature_bank_logo_2.gif) Signature Bank (NASDAQ: SBNY) is doing something very few companies see. The stock is rallying on its secondary offering. Back on Tuesday, September 2 it announced the bank was selling 3.5 million shares and would give underwriters a 525,000 over-allotment option. That morning it was at $29.00. Now the company has announced early this morning that it priced those shares at $29.00 after closing at $30.07 yesterday. The demand was very high as it ended up selling a total of 4.7 million shares and gave the underwriters a 700,000 share over-allotment option.
The company had originally planned to sell $100 million worth of stock. This larger offering was about $136.3 million before selling fees. Friedman Billings Ramsey was the lead manager in the underwriting, and co-managers are Oppenheimer and Sandler O'Neill. With Oppenheimer being the co-manager, maybe the bank will be off of Meredith Whitney's hit list of pans for the time being.
Before this offering the market cap was listed as $931 million accounting for the 4% rise today. What is perhaps more interesting than anything is how shares rallied into the offering rather than selling off into the offering. But another 4% rise on top of a discounted offering where the buyers who subscribed into the secondary could have short sold ahead of time or upon receipt while they wait for shares is not the usual path that traders see.
With all of the sale proceeds going to the bank itself, traders are looking at this as a shoring up of capital and as being a growth engine for expansion in the New York area in a time when other banks are being lined up in front of the firing squad.
Its 52-week trading range is $22.31 to $38.20
Jon C. Ogg
September 9, 2008
http://feeds.feedburner.com/~f/typepad/RyNm?i=CTPqL</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=CTPqL) http://feeds.feedburner.com/~f/typepad/RyNm?i=gLSBL</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=gLSBL) http://feeds.feedburner.com/~f/typepad/RyNm?i=qj0Wl</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=qj0Wl)
complete story here... (http://www.247wallst.com/2008/09/signature-bank.html)
http://www.247wallst.com/images/2008/09/09/signature_bank_logo_2.gif (http://247wallstreet.typepad.com/.shared/image.html?/photos/uncategorized/2008/09/09/signature_bank_logo_2.gif) Signature Bank (NASDAQ: SBNY) is doing something very few companies see. The stock is rallying on its secondary offering. Back on Tuesday, September 2 it announced the bank was selling 3.5 million shares and would give underwriters a 525,000 over-allotment option. That morning it was at $29.00. Now the company has announced early this morning that it priced those shares at $29.00 after closing at $30.07 yesterday. The demand was very high as it ended up selling a total of 4.7 million shares and gave the underwriters a 700,000 share over-allotment option.
The company had originally planned to sell $100 million worth of stock. This larger offering was about $136.3 million before selling fees. Friedman Billings Ramsey was the lead manager in the underwriting, and co-managers are Oppenheimer and Sandler O'Neill. With Oppenheimer being the co-manager, maybe the bank will be off of Meredith Whitney's hit list of pans for the time being.
Before this offering the market cap was listed as $931 million accounting for the 4% rise today. What is perhaps more interesting than anything is how shares rallied into the offering rather than selling off into the offering. But another 4% rise on top of a discounted offering where the buyers who subscribed into the secondary could have short sold ahead of time or upon receipt while they wait for shares is not the usual path that traders see.
With all of the sale proceeds going to the bank itself, traders are looking at this as a shoring up of capital and as being a growth engine for expansion in the New York area in a time when other banks are being lined up in front of the firing squad.
Its 52-week trading range is $22.31 to $38.20
Jon C. Ogg
September 9, 2008
http://feeds.feedburner.com/~f/typepad/RyNm?i=CTPqL</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=CTPqL) http://feeds.feedburner.com/~f/typepad/RyNm?i=gLSBL</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=gLSBL) http://feeds.feedburner.com/~f/typepad/RyNm?i=qj0Wl</img> (http://feeds.feedburner.com/~f/typepad/RyNm?a=qj0Wl)
complete story here... (http://www.247wallst.com/2008/09/signature-bank.html)