HBT Financial Gears Up for IPO

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HBT Financial has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering. The company expects to price its 8.3 million shares in the range of $17 to $19, with an overallotment option for an additional 1.245 million shares. At the maximum price, the entire offering is valued up to $181.36 million. The company intends to list its shares on the Nasdaq under the symbol HBT.

The underwriters for the offering are Keefe Bruyette & Woods, JPMorgan, Raymond James, Sandler O’Neill and D.A. Davidson.

This bank holding company is headquartered in Bloomington, Illinois. As of June 30, 2019, it had total assets of $3.2 billion, loans held for investment of $2.2 billion, total deposits of $2.8 billion and stockholders’ equity of $340 million.

Through its two bank subsidiaries, Heartland Bank and Lincoln Bank, the firm provides a comprehensive suite of business, commercial and retail banking products and services to businesses, families and local governments throughout central and northeastern Illinois. It currently operates 61 full-service and three limited-service branch locations.

The company listed its book value per share as $18.85 and tangible book value per share as $17.28.

In the filing, HBT described how it would use the net proceeds for the offering:

We intend to use the net proceeds to us from this offering to fund a Distribution to our existing stockholders immediately after the closing of this offering in the amount of $170.0 million, which represents a significant portion of our S Corp earnings that have been taxed to our existing stockholders, but not distributed to them. To the extent the net proceeds to us from this offering are insufficient to fund the Distribution, we intend to cause one or both of the Banks to make a dividend payment to us in order to fund the remaining amount. Assuming net proceeds to us from this offering of $136.7 million, we would require a dividend payment of approximately $33.3 million from one or both of the Banks to fund the remainder of the Distribution.

The remainder of the net proceeds would be used for working capital and for other general corporate purposes.

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