Shares of Investors Bancorp Inc. (ISBC - Free Report) plummeted 61.16% to close at $10.42 per share after completion of the mutual-to-stock conversion and common stock offering worth $2.20 billion based on expected dilution of ownership.
On Thursday, Investors Bancorp – the existing Delaware Corporation and the holding company of Investors Bank and New Investors Bancorp – the proposed holding company of Investors Bank, completed the conversion from the mutual fund holding company structure along with the stock offering. After the conversion, New Investors Bancorp owns Investors Bank completely and has become a public shareholding company.
Further, New Investors Bancorp completed the sale of 219.58 million common shares at a price of $10.00 per share, including 6.6 million shares to be procured by the Bank's Employee Stock Ownership Plan (ESOP). Notably, in the subscription offering, the company got over 9,000 orders for about $1.27 billion, excluding ESOP.
RBC Capital Markets, a unit of Royal Bank of Canada (RY - Free Report) , Keefe, Bruyette & Woods, and Sandler O'Neill & Partners, L.P. served as joint book-running managers for the transaction. Further, Barclays PLC (BCS - Free Report) , Deutsche Bank Securities, a subsidiary of Deutsche Bank AG (DB - Free Report) , and J.P. Morgan served as joint lead managers.
Along with the completion of the conversion and stock offering, each existing share of common stock owned by public shareholders was swapped for 2.55 shares of New Investors Bancorp common stock. Further, fractional shares will be paid in cash at $10.00 per share.
Notably, following the conversion, exchange and stock offering, New Investors Bancorp has been renamed Investors Bancorp, Inc. with the ticker symbol of “ISBC.”
Overall, New Investors Bancorp will have shares outstanding of about 358.2 million with a market capitalization of about $3.58 billion. Management looks forward to the success of its plan to leverage the new capital and the expansion of the firm along with the support of employees, shareholders and clients.
Currently, Investors Bancorp carries a Zacks Rank #2 (Buy).