The corporate parent of Paragon Bank disclosed in a new securities filing that it is looking to sell 736,000 shares of stock at a target price of between $33 and $35 each in its initial public offering.
The Raleigh-based company is expected to price its shares and begin trading on Nasdaq next week, according to two companies that track IPOs, Renaissance Capital and IPOScoop.com.
If Paragon hits its sales volume and price targets, its market capitalization – the total value of its outstanding shares – would exceed $175 million.
Paragon would receive $22.9 million in net proceeds, after deducting expenses associated with the offering, if its shares fetch $34 – the midpoint of its price target. The bank plans to use the money it raises to support its growth and to pay off a $4.2 million loan.
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Although the bank’s shares are currently traded over the counter, its stock sale actually is an IPO because the bank was initially funded by private investors and it didn’t issue any new stock when its shares began trading over the counter.
The company has applied to have its shares traded on Nasdaq following the IPO under its current stock symbol, PBNC.
Paragon disclosed its IPO plans last month, but its initial filing didn’t include how many shares of stock it hopes to sell, or the price range it would seek.
Paragon has been operating since 1999 and has branches in Raleigh, Cary and Charlotte. Last year it generated $11.2 million in net income, up 41 percent from 2014.