IPO Report: Avenue Financial Holdings (AVNU)

Francis Gaskins |

Avenue Financial Holdings IPO, Avenue Financial Holdings IPO price, Avenue Financial Holdings IPO date, IPOs this week, stocks to buy now, small-cap stocks Avenue Financial Holdings (AVNU) is headquartered in Nashville, Tennessee. AVNU was formed as a single-bank holding company in October 2006 and operate primarily through its subsidiary, Avenue Bank.

Six other companies are scheduled to IPO for the week of Feb. 9, 2015. The full IPO calendar is available at IPOpremium.

Manager, Joint-managers: Keefe and Bruyette & Woods

Co-managers: Sandler ONeill & Partners and Sterne Agee & Leach

AVNU scheduled a $30 million IPO with a market capitalization of $120 million at a price range midpoint of $12 for Tuesday, Feb. 10, 2015 on Nasdaq. SEC Documents

Avenue Financial Holdings IPO Overview

AVNU is headquartered in Nashville, Tennessee. AVNU was formed as a single-bank holding company in October 2006 and operate primarily through its subsidiary, Avenue Bank.

AVNU’s operations are concentrated in the Nashville MSA and provide a range of financial services through its five locations (four of which are retail branches) and a limited deposit courier service (mobile branch) for select commercial banking clients.

Avenue Financial Holdings IPO Valuation

Glossary

Accumulated deficit (mm)

.

.

-$6

     

Per share dilution

.

.

-$3.83

     

-----------------------------------------------------------------------

     

Valuation Ratios

Mrkt Cap (mm)

Price /Sls

Price /Erngs

Price /BkVlue

Price /TanBV

% offered in IPO

annualizing Sept 9 mos

         

Avenue Financial Holdings (AVNU)

$120

4.1

21.4

1.4

1.5

25%

             

Avenue Financial Holdings IPO: Conclusion

Neutral

Small bank

Rev +25% to $29.3mm

Net income +37%

Price-to-book 1.4

P/E 21.4

53% to selling shareholders

Avenue Financial Holdings Business

AVNU is headquartered in Nashville, Tennessee. AVNU was formed as a single-bank holding company in October 2006 and operate primarily through its subsidiary, Avenue Bank.

AVNU’s operations are concentrated in the Nashville MSA and provide a range of financial services through its five locations (four of which are retail branches) and a limited deposit courier service (mobile branch) for select commercial banking clients.

Founded by a team of executives and banking professionals having substantial experience with large regional institutions in the middle Tennessee market, AVNU’s strategy is to serve Nashville’s rapidly growing need for local banking services.

AVNU’s growth strategy focuses primarily on commercial and private banking.

AVNU provides products and services that compete with large, national competitors, but with the personalized attention and nimbleness of a community bank.

AVNU believes it provides unparalleled levels of client service through the talent and expertise of its people, the responsiveness of its credit processes, and the efficiency with which AVNU conducts business.

This leads to the development of significant, long-term relationships with many of Nashville’s leading individuals and businesses. Despite its relative size in the Nashville banking industry, AVNU has been ranked in the top three banks in Nashville for the last three years by the readers and voters in the Nashville Scene’s “Best of Nashville” poll, ranking second in 2014.

As a company of more than 130 employees, AVNU is woven into the very fabric of its community, through the widespread service and leadership of its employees in non-profit and civic engagement. AVNU believes this genuine passion and engagement in its community, across the board in its company, provides it with the ability to capture a disproportionate amount of business.

Avenue Financial Holdings Competition

AVNU competes with commercial banks, credit unions, savings and loan associations, mortgage banking firms, consumer finance companies, securities brokerage firms, insurance companies, money market funds, and other mutual funds, as well as other community banks and super-regional and national financial institutions that operate offices in its service area.

Avenue Financial Holdings 5% shareholders pre-IPO

Global Strategic Investment Partners Master Fund, L.P.              9.56%

Keefe Bruyette and Woods        8.76%

Endicott Opportunity Partners II, L.P.     6.38%

David Ingram    5.58%  

Avenue Financial Holdings Dividends

No dividends are planned.

Avenue Financial Holdings IPO Use of proceeds

AVNU expects to receive $14 million from its IPO and use it for the following:

to redeem in full all of its outstanding Series C Preferred Stock (which currently has a dividend rate of 1% per annum that will increase to 9% per annum on March 15, 2016)

and to transfer the balance to its bank for general corporate purposes, which may include to support balance sheet growth,

to acquire other banks or financial institutions or other complementary businesses to the extent such opportunities arise, and to maintain its capital and liquidity ratios, and the ratios of its bank, at acceptable levels.

Although AVNU may, from time to time, evaluate potential acquisitions, it does not have any arrangements, agreements or understandings relating to any acquisitions at the current time, and it is not engaged in any negotiations to make any acquisitions.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
AVNU Avenue Financial Holdings Inc. n/a n/a n/a 0

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