This article from HousingWire discusses reports that First Republic Bank, a California-based private bank, is looking into a potential sale. First Republic, which manages nearly 250 billion dollars in assets and has 78 branches across the U.S., has reportedly opened a book building process with a goal of selling the bank within the next several months.
First Republic’s book building process involves reviewing potential options with bankers and investors, such as with-sales to another company or through a publicly listing of the bank, which would allow investors to trade common stock of the firm. First Republic’s potential sale became evident as the stock rose 7% in the New York Stock Exchange on November 5th following news of the book building process.
First Republic is held privately by founder and billionaires Michael Dell and Tom Steyer. In 2007, First Republic’s founders and other private equity investors implemented the bank with payment of 965 millions dollars, while Dell and Steyer later increased their private equity investments to maintain the company’s majority ownership.
Though many banks have resorted to being acquired since the 2008 recession, First Republic maintains diligence in providing to its customer base, such as offering no-cost services for small business banking accounts as well as focusing on customer growth and relationships with advisors.
Overall, news of First Republic’s potential sale serves as an indicator that the bank is looking to maximize shareholder value amidst changing trends in ownership and the banking industry. With the aid of the upcoming book building process, the bank is likely to set into motion its next step towards the optimization of its growth and its customer base.
You can read this full article at: https://www.housingwire.com/articles/first-republic-bank-is-reportedly-exploring-sale-bloomberg/(subscription required)
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