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London - First Hawaiian, the Honolulu-based bank owned by BNP Paribas SA, is aiming to raise as much as $485m in an initial public offering.
ion shares from $21 to $23 apiece, according to a filing Tuesday with the US Securities and Exchange Commission.
Including an over allotment of an additional 3.16 million shares to underwriters, First Hawaiian could raise as much as $557.8m. BNP Paribas will retain control of about 85% 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 $3.2bn at the high end of the marketed range. That’s down from previous projections that put the bank’s value at as much as $5bn, 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, 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% of deposits and 70% of loans were based in the state. Three branches are located in Guam and two in Saipan.
Comparable bank
Its closest comparable company is Honolulu-based Bank of Hawaii, 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 $3bn after the stock gained 11% this year.
First Hawaiian posted net income of $213.8m last year, down 1.3% from 2014. Net interest income climbed 3.9% in 2015 to $461.3m. Total assets were $19.1bn 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 Start-ups Act of 2012. It may take advantage of the reduced reporting requirements allowed under that definition, the filing shows.
Goldman Sachs Group, Bank of America and BNP are leading the offering.
