Live Oak Bancshares Inc., parent of Wilmington-based Live Oak Bank, could conceivably raise up to $72 million through an initial public offering, according to new information on proposed per-share prices the company filed with regulators.
Live Oak Bancshares filed its initial Securities and Exchange Commission Form S-1 on June 19
, declaring its intention of going public. It is the second time the company has indicated such intent. It filed a Form S-1 in April 2014, but withdrew it in September
after closing on a large investment from Wellington Management.
In its amended Form S-1 prospectus, filed Monday with the SEC, company officials stated that Live Oak Bancshares will offer four million shares of voting common stock at a price per share between $16 and $18. In a separate Form 8-A SEC filing Monday, the company applied to list the common stock on the NASDAQ Global Market under the symbol LOB.
“Assuming an initial public offering price of $17 per share, which is the midpoint of the estimated price range ... we expect to receive net proceeds from this offering of approximately $62.9 million,” the prospectus stated. It adds that current underwriters will have an option to purchase up to 600,000 additional shares of Live Oak’s common stock in this offering – options exercisable within 30 days from the date of the prospectus. If the underwriters choose to exercise those options in full, the company’s net proceeds would be $72.6 million, according to the prospectus.
Describing Live Oak Bancshares’ securities, officials state in the prospectus that the company is authorized to issue 110 million shares of common stock: 100 million of them as voting shares and 10 million as non-voting shares. Of those, almost 24 million shares of voting common stock are currently held by private individuals and entities, and nearly 4.8 million shares of non-voting common stock are likewise in private hands.
Wellington Management and Maurice Koury are the current outside investors that own more than 5 percent each of common stock, according to the Form S-1. The remaining major investors shown on the prospectus are company directors and executives.
“The common stock we are offering through this prospectus is voting common stock,” the prospectus states. “Upon completion of this offering (assuming the underwriters do not exercise their option to purchase additional shares), there will be 32,654,860 shares of voting and non-voting common stock outstanding. Up to an additional 2,268,736 shares of voting common stock will be issuable upon exercise of outstanding options granted under our stock option plans.”
Proceeds of the IPO would be used to support organic growth in Live Oak Bank’s lending within its existing target industries as well as for expansion into new industry verticals, according to information in the Form S-1. Proceeds would also be used to develop a new online lending platform for originating loans of less than $350,000, to support the growth of the bank’s balance sheet and “for general corporate purposes,” which could include possible acquisitions of – or investments in – other banks or non-bank entities, the document states.
Company officials said Tuesday they were unable to comment on their IPO process at this time.
Founded in Wilmington in 2008, Live Oak Bank is focused primarily on providing Small Business Administration-guaranteed loans to businesses within specified industries, although it does offer deposit accounts and certificates of deposit. Within the past six months, the bank has added the wine and craft beverage, hotels and self-storage verticals to its list of target industries.