BCB Bancorp Prices $85M Stock Offering at $7.75/Share Amid Q3 Loss Warning
BCBP is trading near its 52-week low of $7.31 (7.9% above the low).
Summary
BCB Bancorp priced its follow-on offering at $7.75 per share, raising $85.25 million in gross proceeds. The offering is expected to close on September 18. The pricing comes hours after the bank guided to a massive Q3 net loss driven by an estimated $87 million pre-tax loss from selling problem loans. The offering is highly dilutive relative to the company's $149 million market cap, and the discount to the prior close of $7.89 signals weak demand. This follows the $75 million prospectus supplement filed earlier today and the $100 million shelf registration from August. The capital raise is a direct response to the Q2 loss of $14.8 million and the suspension of dividends.
At the time of this announcement, BCBP was trading at $7.89 on NASDAQ in the Finance sector, with a market capitalization of approximately $149.3M. The 52-week trading range was $7.31 to $11.71. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.