Eastern Bankshares, a Massachusetts bank with 89 branches in eastern Massachusetts and New Hampshire, raised $1.8 billion through a best-efforts subscription offering in connection with its conversion from a mutual holding company to a publicly-traded stock corporation. Eastern Bankshares began trading on the Nasdaq on Thursday under the symbol EBC. At the $10 subscription price, the company commands a market value of $1.9 billion.
Because the shares were sold through a best-efforts subscription offering, Eastern Bankshares is excluded from Renaissance Capital's IPO stats.
The company sold 179.3 million shares of common stock at $10 to eligible depositors of Eastern Bank, along with employees, officers, directors, and trustees of the company and affiliated entities. It donated an additional 7.5 million shares to the Eastern Bank Charitable Foundation. Eastern Bankshares originally filed to register its shares under a min-max offering of between 129.6 million and 175.4 million shares, subject to be upsized by 15% (201.7 million shares); the company concluded the subscription offering on September 16, 2020, and announced the results of the offering on October 9.
Founded in 1818 as a local savings bank, Boston-based Eastern Bank has evolved into a diversified commercial bank serving eastern Massachusetts and southern and coastal New Hampshire. The company provides products and services to retail, commercial, and small business customers, operating in two primary business segments: banking and insurance agency operations.
Keefe Bruyette Woods acted as selling agent in the offering, and J.P. Morgan served as the company's capital markets advisor.
The article Massachusetts bank Eastern Bankshares raises $1.8 billion in mutual-to-stock conversion and Nasdaq listing originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.
Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital's Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of companies mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.