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Eastern Bank announced it has begun its stock offering as it plans to give up its status as the state’s largest mutual bank and transform into a stock bank.
The move could give it more opportunities to grow and compete in the state’s banking market. As part of the bank’s plan, 4 percent of the shares in its new stock holding company will be given to its charitable foundation as an endowment.
Eastern is offering 175,375,000 shares of common stock at a purchase price of $10 per share, although the company said it may sell up to 201,681,250 shares of common stock because of demand for the shares or changes in market conditions, without resoliciting investors. The company will trade on the Nasdaq stock exchange under the ticker symbol “EBC.”
Shares are being offered, in order of priority, to:
- Eastern Bank depositors with account balances of $50 or more as of March 29, 2019
- Depositors with balances of $50 or more as of March 31 of this year
- The bank’s employee stock ownership and 401K plans
- Employees, directors and corporators not otherwise eligible under the first three categories
- Massachusetts and New Hampshire residents
- The public at large.
The process is being managed by Keefe, Bruyette & Woods.
