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Luther Burbank Corp. estimates IPO price range

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Luther Burbank Corp. estimates IPO price range

Santa Rosa, Calif.-based Luther Burbank Corp. is offering 11,350,000 common shares in its IPO, and expects to sell the stock at a price between $10.50 and $12.50 per share.

The underwriters have the option to buy up to 1,702,500 more shares.

If the shares are sold at the midpoint of $11.50 per share, net proceeds are estimated at $120.0 million. If the underwriters exercise their overallotment option in full, net proceeds will amount to approximately $138.3 million.

Part of the proceeds will fund a $40.0 million cash distribution to existing shareholders. It will be paid out immediately after the IPO's close. Existing shareholders will also receive $7.1 million before completion, for the payment of estimated taxes that will be passed through to them due to the company's S corporation status. The company will become a C corporation after the offering's completion.

Luther Burbank expects to pay a regular quarterly cash dividend of 5.75 cents per share, beginning in the second quarter of 2018. Another dividend may be paid in the quarter before that.