Shares of the corporate parent of Paragon Bank began trading on the Nasdaq stock exchange Thursday after the Raleigh company completed an initial public offering of stock.
Paragon priced its IPO shares at $34 – the midpoint of the bank’s target price of $33 and $35. The stock fell 1.14 percent, or 21 cents, on Thursday.
Although the bank’s shares are currently traded over the counter, its stock sale was considered 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 trades on Nasdaq under its current stock symbol, PBNC.
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Paragon sold 736,000 shares. The company’s underwriters also have the option to purchase an additional 110,400 shares.
The bank is expected to receive $22.9 million in net proceeds, after deducting expenses associated with the offering. The bank plans to use the money it raises to support its growth and to pay off a $4.2 million loan.
Founded in 1999, Paragon has branches in Raleigh, Cary and Charlotte and had total assets of $1.34 billion as of March 31. It has $1.04 billion in outstanding loans.
Last year Paragon generated net income of $11.2 million, up 41 percent from 2014. In the first quarter net income totaled $2.8 million, up 23 percent.