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Thursday, Oct 6, 2022
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Bank of Internet Goes Public

San Diego’s BofI Holding, parent firm of Bank of Internet USA, raised nearly $33 million or about $10 million more than it originally expected using the Dutch auction method on its initial public offering March 15.

CEO Gary Lewis Evans said he was unable to comment because of a “silent period” imposed by securities regulations.

“It went well, but I can’t talk for another 25 days. Our lawyers said don’t say a word. It’s crazy,” said Evans, the company’s founder.

The numbers speak for themselves. Had the company conducted the offering in the traditional way, it would have paid a higher cost to underwriters, and received less, said John McCracken, managing director for WR Hambrecht & Co., the San Francisco-based investment bank that handled the auction process.

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Through Hambrecht and two other market makers, BofI Holding sold 3,052,174 shares priced at $11.50, about the mid point of the anticipated range of $9 to $13.

The Dutch auction method, the same process used by Google last year in the largest IPO to date, allows investors to bid on what they think the stock price should be.

The stock that’s traded on Nasdaq as BOFI rose to $11.65 on the first day, but closed at the same offer price by the end of the day.

BofI USA, with only a single office in Carmel Valley, said it plans to use the capital to grow the thrift’s assets. Bank of Internet USA opened in July 2000, and held assets of $513 million as of Dec. 31, up from $316 million at the end of 2003. For its most recent fiscal year ended June 30, net income more than doubled to $2.2 million from the prior fiscal year.

Mike Allen

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