LANCASTER, Pa. - Fulton Financial (NASDAQ:FULT) Corporation (NASDAQ: FULT), a Pennsylvania-based financial holding company, announced today the pricing of its public stock offering. The company has set the price at $15 per share, offering a total of 16,666,667 shares. This move is expected to raise $250 million in aggregate, before considering the additional option granted to underwriters to purchase up to 2,500,000 more shares at the public offering price, minus underwriting discounts.
Joint book-running managers for this offering are Piper Sandler and BofA Securities. The offering's net proceeds, projected to be around $238 million after underwriting discounts and before transaction expenses, are intended for general corporate purposes.
These include supporting new opportunities aligned with Fulton Financial's business strategy, particularly following its acquisition of assets and the assumption of deposits and certain liabilities from Republic First Bank (NASDAQ:FRBA), which operates as Republic Bank, as facilitated by the Federal Deposit Insurance Corporation.
The offering is anticipated to close on or about May 1, 2024, subject to standard closing conditions. It is being made through a prospectus supplement and an accompanying base prospectus, which are part of a registration statement filed with the U.S. Securities and Exchange Commission (SEC). Prospective investors are encouraged to read these documents, available on the SEC's website, for a fuller understanding of Fulton Financial and the offering.
The company operates over 200 financial centers across five states through its subsidiary, Fulton Bank, N.A. This offering is part of its efforts to expand and strengthen its business operations.
This news is based on a press release statement.
InvestingPro Insights
Fulton Financial Corporation's (NASDAQ: FULT) recent public stock offering comes on the heels of a period marked by significant financial performance metrics and strategic decisions that may interest prospective investors. With a market capitalization of approximately $2.53 billion and a P/E ratio that stands at a competitive 9.46 for the last twelve months as of Q1 2024, the company presents a potentially attractive investment profile in the banking sector.
InvestingPro Tips highlight that Fulton Financial has not only maintained its dividend payments for an impressive 43 consecutive years, but it has also experienced a substantial price increase of 28.31% over the last six months. These factors underscore the company's commitment to shareholder value and its recent market momentum. Moreover, analysts have revised their earnings expectations upwards for the upcoming period, suggesting confidence in the company's future profitability, which is corroborated by the prediction that Fulton Financial will be profitable this year.
Key financial data such as the revenue growth of 3.82% over the last twelve months as of Q1 2024, and a solid operating income margin of 35.71%, provide a snapshot of the company's operational efficiency and its ability to translate top-line growth into bottom-line results. Additionally, the dividend yield as of the latest data stands at a robust 4.35%, which could be appealing for income-focused investors.
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