Central Bancompany also surged 5 percent on its debut at Nasdaq on Thursday, valuing the U.S. lender at $5.26 billion and continuing a run of financial companies going public this year.
The company shares opened on an above-price of IPO at $22.06 a price above the IPO price of $21 apiece in which the company raised $373.33 million by selling approximately 17.78 million shares.
However, the price range at which the IPO was marketed by the company was between $21 and $24.
U.S. IPO activity resumed in September, with Swedish fintech Klarna and the Winklevoss twins’ crypto exchange Gemini attracting strong investor demand in their market debuts.
However, a slow reaction to travel technology company Navan and an electric craft manufacturer, Beta Technologies, highlights the need to be cautious of the market, as the U.S. government has been shut down for a long period.
The credit risks in the banking industry have also been of concern to investors following two cases of corporate bankruptcies that have sparked off fears of stress and lending in the international private credit market. Therefore, analysts minimized the stress across the sector, claiming that the events were isolated.
CEO of IPO research firm IPOX, Josef Schuster, said, “I don’t believe underlying credit worries will deter investors from buying the stock. The bank’s successful trajectory fits well with investors looking for exposure to banks operating in markets with strong economic growth.”
Jefferson City, Missouri-based Central Bancompany with total balance sheet assets of $19.2 billion and wealth assets under advice of $15.4 billion, and serves consumers and businesses in Missouri, Kansas, Oklahoma, Colorado, and Florida.
Meanwhile, Central follows Commercial Bancgroup to the public markets following the lender’s debut last month. Both Morgan Stanley and Keefe, Bruyette, and Woods are the joint lead book-runners of the offering.
