Republican Party’s top bank, Chain Bridge, aims for $167 million valuation in US IPO By Reuters

Written by Niket Nishant and Manya Saini

(Reuters) – Series Bridge Bancorp (NASDAQ:), a bank that has been popular among Republicans since its inception, is targeting a valuation of up to $167 million in its US initial public offering.

The IPO, which is relatively uncommon in the banking sector, comes just one month before the US presidential election.

The McLean, Va.-based bank, which has just one branch and 84 employees, has overtaken its larger financial rivals to become a must-have partner in political action.

Recent strong debuts by listed companies have also helped boost the IPO market, especially for profitable companies.

Chain Bridge said it seeks proceeds of $48.1 million by selling 1.85 million shares at a price of $24 to $26 per share.

ChainBridge, founded by former Republican Sen. Peter Fitzgerald, has worked with the campaign of every Grand Old Party presidential candidate since John McCain in 2008, Reuters reported in July.

The bank’s fortunes are closely linked to the party. “Any event that negatively impacts the Republican Party…could result in significant outflows of deposits,” Chain Bridge warned in its filings.

However, the bank’s strong credit quality may attract investors at a time when concerns over bad loans have hurt many players in the industry. Chain Bridge has had no non-performing loans in the past 12 years, she said.

“ChainBridge is timing its listing very deliberately,” said Angelo Buchanis, data and indicators associate at Renaissance Capital.

“No matter what happens in November, the Republican Party does not appear to be going anywhere anytime soon, and there is a long-term trend of more money entering US elections, which ChainBridge may benefit from.”

The lender plans to use the IPO proceeds for general corporate purposes, such as financing its expansion and repaying debt.

Piper Sandler, Raymond James and Hovd Group are the underwriters for the IPO.

Chain Bridge will seek to list on the New York Stock Exchange under the symbol “CBNA.”