BNP subsidiary First Hawaiian (FHB) is set to raise $464 million in the largest bank IPO since RBS spin-off Citizens Financial (CFG) in September 2014. With over $19 billion in assets, it is Hawaii’s largest financial institution.
In the face of record low interest rates, Brexit uncertainty and regulatory hurdles, Financials is the worst performing S&P sector this year (-1%), despite recovering from post-Brexit lows. The three banking IPOs year to date, US-based Paragon Commercial (PBNC) and Midland State (MSBI) and Argentina’s Grupo Supervielle (SUPV), have returned an average of 10% from their IPO price. This continues the trend of bank IPO outperformance, with 2014 deals up an average of 34% and 2015 bank debuts up 23%.
Banking IPO Statistics | ||||
Year |
# of banking IPOs | Avg. deal size (mm) | % above issue | Avg. total return |
2016 | 3 | $129 | 100% | +10% |
2015 | 9 | $40 | 78% | +23% |
2014 | 15 | $361 | 87% | +34% |
Total | 27 | $228 | 85% | +28% |