If all goes as planned, Square 1 Bank will become publicly traded on Thursday on the Nasdaq under the symbol SQBK.

According to data from the exchange, Square 1 is scheduled to begin trading March 27, ending a three-month process that began with an initial IPO filing in January.

The Durham-based venture capital focused bank looks to raise $45.5 million after expenses and investors are hoping to cash out a similar amount when its initial public offering is executed on Thursday.

Some 5.8 million shares are to be offered with the bank itself offering 2.8 million.

In total, the IPO is expected to generate nearly $115 million, depending on final share pricing. 

Shares are expected to price between $15 and $17.

According to Square 1, the bank expects to net $45.5 million after expenses if shares price at $16.

Another $7 million would come if underwriters exercise their rights.

A $1 change in price either up or down would have a $2.9 million impact before options are exercised, the bank says.

Square 1 will not receive any proceeds from shares sold by investors.

The company has steadily increased profits and also expanded the size of the offering.

Founded in 2005, Square 1 operates offices in 12 markets and has 230 employees. It has more than $2 billion in deposits.

Investing Proceeds

So how will Square 1 invest its share of IPO money?

“We expect to downstream approximately 90% of the net proceeds of the offering to Square 1 Bank,” it says.

“We intend to use the net proceeds to us generated by this offering to support our long-term growth by enhancing our capital ratios in light of the heightened capital standards under Basel III, and for general working capital and other corporate purposes.

“We intend, as a secondary purpose of the offering, to use the net proceeds to redeem, at the first quarterly redemption date following the offering, any Series A preferred stock and to retire any indebtedness relating to Square 1 Financial’s trust preferred securities that remain outstanding following the completion of this offering.

“Our trust preferred securities and Series A preferred stock are currently redeemable by the Company, at its option, on any quarterly dividend payment date. No premium is attached to such redemption. Such redemption would require approval of the Federal Reserve, which approval has not yet been sought.

“As our preferred stock and our trust preferred securities are currently convertible, at the option of the holder, into common stock at a conversion price of $10.00 per share, we expect that a significant portion of the $7.4 million in outstanding trust preferred securities and the $5.0 million in outstanding Series A preferred stock will be converted into common stock prior to the redemption date.

“Although we may, from time to time in the ordinary course of business, evaluate potential acquisition and business line expansion opportunities that we believe are complementary to our business and provide attractive risk-adjusted returns, we do not have any immediate plans, arrangements or understandings relating to any material acquisition.

“Our management will retain broad discretion to allocate the net proceeds of this offering. The precise amounts and timing of our use of the proceeds will depend upon market conditions, among other factors.”

More information about the IPO can be found online at the Nasdaq.