Baton Rouge-based Business First Bank officially became a publicly traded company this morning, when the bank’s common stock began listing on the NASDAQ stock exchange.
Business First Bancshares, the holding company of Business First Bank, announced the direct listing earlier this morning. The bank’s stock is trading under the ticker symbol BFST.
While going public is a significant milestone for the bank, Business First Bank President and CEO Jude Melville says it’s less an accomplishment and more a tool that will enable the bank to grow.
Specifically, it gives stability to the bank’s shareholder base, makes it easier to raise capital when opportunities present themselves and makes the bank more attractive as a potential partner to other companies, Melville says.
“Also, as we compete for talent it gives us a certain level of credibility and sustainability,” he says. “It’s another tool for us to use in recruiting good talent.”
Though the bank’s stock is now publicly traded, today’s action is not an Initial Public Offering. For one thing, Business First Bank registered its stock with the Securities and Exchange Commission more than two years ago in connection with the acquisition of American Gateway Bank.
Also, IPOs are used to raise capital for a company. Business First Bank does not need to raise capital at this time because it raised more than $66 million last fall, primarily from institutional investors, in preparation for its $76 million acquisition of MLB Bank in Minden.
“Normally, you begin with your public registration, raise capital and being listing on the same day,” he says. “We’re doing it non-traditionally in that we did the registration two years ago. We raised the capital in October and now we’re coming back to list.”
Business First Bank has undergone significant expansion in recent years. The bank currently has some $1.6 billion in assets and operates 19 offices, including 16 banking centers, two loan production offices and one wealth solutions office in markets across Louisiana and Texas.
