PlainsCapital postpones IPO, citing volatility
The Associated PressTexas bank PlainsCapital Corp. late Wednesday postponed its initial public offering, blaming market swings in financial stocks.
PlainsCapital said it will hold off until the market improves.
"The current market volatility, especially as it affects financial stocks, has created unfavorable conditions for the offering," said Alan B. White, chairman and CEO of PlainsCapital, in a statement.
The company had hoped to sell 15 million shares to raise about $141.5 million. It had planned to use the bulk of the money — $92 million — to buy back preferred stock from the U.S. Treasury Department. The stock was issued under the government's Capital Purchase Program, which injected money into troubled banks during the financial crisis.
Another $20 million would have repaid debt owed under a revolving credit line to an affiliate of J.P. Morgan Securities.
After a relatively calm, steady rise, the Dow Jones industrial average has returned to broad swings. While not reaching the wide volatility of last year, the last 10 trading days have seen triple digit shifts every session. The KBW Philadelphia Bank Index is down 12 percent in that time.