In preparation for its upcoming initial public offering (IPO), the North Carolina-based Riverbanc Multifamily Investors Inc. revealed a price target and presumed launch date of July 31, 2015. Here’s what investors need to know about the upcoming Riverbanc IPO.
Who is Riverbanc?
Riverbanc is an investment firm that holds investments whose value is backed by multifamily and other housing related assets. The company was founded as a joint venture between the New York Mortgage Trust Inc. (NASDAQ/NYMT) and JMP Holding LLC (or JMP Holding). (Source: Riverbanc Website, July 30, 2015.)
What is Riverbanc’s Business Model?
In partnership with an experienced housing operator, Riverbanc provides loans for conventional apartment buildings, student housing, and high-quality mobile home parks.
By teaming up with a bank or lending company, Riverbanc has expanded its operations to all 50 states in the U.S. The company invests at least $3.0 to $4.0 million on projects with an expected return of 12% to 15%.
How Big is Riverbanc’s Portfolio?
The company is growing rapidly, having catapulted its assets under management from $100 million in 2011 to $800 million by May 2015. Riverbanc’s seventh joint venture deal broadened the portfolio’s holdings to 7,700 units. (Source: Renaissance Capital IPO Center, July 22, 2015.)
What is Riverbanc’s IPO Price?
The target price for Riverbanc’s IPO is between $19.00 and $20.00. Using a midpoint estimate, and assuming the 3,800,000 shares are fully subscribed, proceeds from the IPO could raise $129 million in equity.
What is Riverbanc’s Stock Symbol?
Riverbanc plans to be listed on the NASDAQ stock exchange under the ticker symbol “RMI.”
How Will Riverbanc Use the Money?
Between $6.1 and $9.1 million of the proceeds will be used to complete a deal that’s nearing completion. Another chunk of funds will be used to buy out the Contributed Assets of the New York Mortgage Trust, one of the founding partners of Riverbanc. Beyond that, the company will seek to further invest in its core operations. (Source: Riverbanc Form S-11, June 17, 2015.)