Richmond, Ind.-based Richmond Mutual BanCorp. Inc. is offering up to 11,327,500 common shares at $10.00 apiece in connection with the reorganization of First Bank Richmond from a mutual holding company organization.
The company also said it could increase its maximum share offering to up to 13,026,625 common shares, based on market demand, for a gross offering size of up to roughly $130.3 million and expected net proceeds of around $127.5 million.
After completion of the conversion, all First Bank Richmond common shares will be owned by Richmond Mutual BanCorp., which was incorporated in February 2019, and Richmond Mutual BanCorp. common shares will be owned by public shareholders.
Richmond Mutual BanCorp. expects its shares to trade in the Nasdaq Capital Markets under the symbol RMBI.
Richmond Mutual BanCorp. intends to invest at least 50% of the net offering proceeds in First Bank Richmond. It also plans to contribute $1.25 million in cash and $5.0 million of stock to a charitable foundation, redeem subordinated debentures and preferred shares of First Mutual of Richmond Inc., which will be assumed by the company in connection with the reorganization plan, and fund loans in its employee stock ownership plan to finance purchases of common shares in the offering.
Keefe Bruyette & Woods is the underwriter of the offering.
Richmond Mutual BanCorp. is a subsidiary of First Mutual of Richmond Inc.