Chain Bridge Bancorp IPO: stock price will be closely watched today as bank popular with Republicans lists on the NYSE

Chain Bridge Bancorp, Inc. is having its initial public offering today. The company is a Delaware-chartered bank holding company that owns Chain Bridge Bank, N.A.

It’s one of the newer banks in America and when compared to the country’s national or even regional banks, is very, very small. Here’s what you need to know about Chain Bridge and its IPO:

What is Chain Bridge Bank?

Chain Bridge was founded in August 2007, making the bank just 17 years old this year. It is based in McLean, Virginia, and if you have never heard of it before, there’s a good chance you’re not a Republican operative.

The bank, which has only one physical branch, is popular with Republicans. While it offers both commercial and personal accounts—and other services such as mortgages—it is best known for holding the money of Republican political entities, lobbying organizations, and think tanks.

According to Axios, the bank is also used by the RNC, various GOP state parties, and The Trump Victory Committee political action committee. That the bank seems to have a powerful Republican clientele is of little surprise considering it was founded by former Illinois Senate Republican Peter Fitzgerald.

Of course, being a Republican isn’t required to use the bank’s services. Anyone can apply for a digital banking account or other financial offerings. The bank says it serves deposit clients in 48 states.

According to the company’s recent S-1 filing with the Securities and Exchange Commission (SEC), the bank held total assets of $1.4 billion as of June 30, 2024.

When is Chain Bridge’s IPO?

Chain Bridge priced its shares yesterday. They are expected to begin trading today: Friday, October 4, 2024.

What is Chain Bridge’s stock ticker?

Chain Bridge shares will trade under the stock symbol “CBNA.”

Which exchange will Chain Bridge trade on?

Chain Bridge shares will trade on the New York Stock Exchange (NYSE).

How many Chain Bridge shares are available in its IPO?

Chain Bridge’s IPO offered 1.85 million of its Class A common stock to the public.

What is Chain Bridge’s IPO price?

CBNA shares were priced at $22. At that price, Chain Bridge raised just over $40 million in its IPO.

What will Chain Bridge use the proceeds from the IPO for?

In a press release, Chain Bridge says it plans to use the profits from the IPO “primarily for general corporate purposes (which may include supporting continued organic deposit growth and funding potential strategic expansion) and to repay the $10 million outstanding principal balance under its unsecured line of credit.”

How much is Chain Bridge worth?

According to a September 30 report from Reuters, Chain Bridge could be worth as much as $167 million after its IPO.

However, Reuters was basing that figure on the assumption that the bank’s IPO share price would be slightly higher—between $24-26 per share. Its final share price came in below expectations at $22.

Could the upcoming presidential election affect Chain Bridge’s fortunes?

That’s unknowable. But Chain Bridge makes no apprehensions when it comes to highlighting just how tied to the Republican Party it is.

In its S-1 filing, the company said, “Our deposit base is vulnerable to changes in the Republican Party’s candidates, political fortunes, strategies, or fundraising. Any event that negatively impacts the Republican Party, including its ability to raise funds or its popular support, could lead to significant deposit outflows. For example, controversies, leadership changes, or shifts in party strategy affecting the Republican Party could adversely affect our deposit levels.”

The company also noted: “Our association with Republican-affiliated organizations may impact our ability to attract or retain clients with different political affiliations. It could also expose us to public relations challenges, including negative media coverage, social media criticism or potential boycotts from supporters of other political viewpoints.”