Deal conducted in connection with bank’s conversion to stock issuer
By Devika Patel
Knoxville, Tenn., Sept. 11 – Central Federal Bancshares, Inc. priced a $14.95 million initial public offering of stock with a $2.24 million greenshoe, according to a Form S-1 filed Friday with the Securities and Exchange Commission. The offering is being conducted in connection with the conversion of Sunnyside Federal Savings and Loan Association of Irvington from the mutual to the stock form of organization.
The company will sell up to 1,495,000 common shares at $10.00 apiece on a best-efforts basis. The company must sell a minimum of 1,105,000 shares in order to complete the offering.
Investors must purchase a minimum of 25 shares.
Keefe, Bruyette & Woods, Inc. is the bookrunner.
Proceeds will be contributed to Central Federal Savings and Loan, to fund a loan to the employee stock ownership, make short-term, liquid investments, increase the company’s investment portfolio and implement its business plan, potentially pay dividends to shareholders and repurchase common shares.
Rolla, Mo., Central Federal Bancshares is the holding company for Central Federal Savings and Loan Association of Rolla. It expects its shares to trade on the OTCBB exchange.
| Issuer: | Central Federal Bancshares, Inc.
|
| Issue: | Common stock
|
| Amount: | $11.05 million (minimum), $14.95 million (maximum)
|
| Greenshoe: | $2,242,500, or 224,250 shares
|
| Shares: | 1,105,000 (minimum), 1,495,000 (maximum)
|
| Price: | $10.00
|
| Warrants: | No
|
| Bookrunner: | Keefe, Bruyette & Woods, Inc.
|
| Pricing date: | Sept. 11
|
| Stock exchange: | OTCBB
|
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