Byline Bancorp is Chicago’s newest publicly traded bank – Finance News

on Jun30

30 June 2017 | 3:44 pm

Byline Bancorp is Chicago’s newest publicly traded company.

Shares of the parent of $3.3 billion-asset Byline Bank began trading this morning after a successful initial public offering at $19 per share—the low end of the range the company gave—for a market value of $540 million. The bank sold 5.7 million shares, raising $108 million, the majority of which goes to the bank and some of which will be pocketed by exiting shareholders.

That valued the bank at a modest 1.4 times book value, giving the shares room to rise in the first day of trading.

The stock rose to above $20 in late-morning trading, a 5.5 percent bump.

The IPO was the first for a Chicago-area bank in 15 years, a sign of just how much turmoil the industry has gone through as the exuberance of the mid-2000s housing bubble gave way to the worst economic collapse since the Depression.

The IPO also affirmed the clean-up job Chairman Roberto Herencia and CEO Alberto Paracchini did on the former Metropolitan Bank Group, the local banking franchise owned formerly by the Fasseas family, founders of Paws animal shelter. Metro Bank Group was on the brink of failure before Herencia led a group of Mexican investors that recapitalized it to the tune of more than $200 million nearly four years ago to the day.

“This is a huge milestone,” Paracchini said in an interview as the management team sped to the airport from the New York Stock Exchange.

Armed with its new publicly traded currency, Byline is expected to be a buyer of smaller, privately held Chicago banks as it looks to grow.

“We have a management team that is capable of running a much larger and more complex organization,” Herencia said.

Paracchini expressed faith in the Chicago market, where Byline expects to continue to focus.

“We love Chicago,” he said. “We’re certainly committed to Chicago. We think Chicago is a great place to do business despite some of the challenges we’re dealing with.”



Previous postTrump Endorses Repeal-First Strategy if Health Care Deal Fails Next postBrady Unanimously Elected Senate Republican Leader After Radogno's Resignation

Chicago Financial Times

Every effort has been made to accurately represent this web site or product and its potential. Even though this industry is one of the few where one can write their own check in terms of earnings, there is no guarantee that you will earn any money using the techniques and ideas in these materials.


Chicago Financial Times


Copyright © 2018 Chicago Financial Times

Updates via RSS
or Email