Security Midwest Bancorp Completes Initial Public Offering

Rhea-AI Summary

Security Midwest Bancorp (OTCQB:SBMW) has successfully completed its Initial Public Offering (IPO) as part of its conversion from a mutual to stock form organization. The company sold 889,781 shares at $10.00 per share, raising approximately $8.9 million in gross proceeds.

The offering included 62,285 shares sold to the Bank's Employee Stock Ownership Plan. Trading is expected to commence on the OTCQB Market around August 1, 2025. DRS Book-Entry statements and interest checks will be distributed to shareholders by Pacific Stock Transfer Company on or about the same date.

Positive

• Successfully raised $8.9 million through IPO completion
• 100% of offered shares were sold, indicating strong demand
• Employee Stock Ownership Plan participation shows internal confidence
• Transition from mutual to stock form provides new growth opportunities

Negative

• Trading on OTCQB rather than major exchanges may limit institutional investor access
• Relatively small offering size may impact stock liquidity

SPRINGFIELD, Ill., July 31, 2025 /PRNewswire/ -- Security Midwest Bancorp, Inc. (the "Company"), the holding company for Security Bank, s.b. (the "Bank"), has completed its initial public offering in connection with the Bank's conversion from the mutual to the stock form of organization, effective today.  The Company sold 889,781 shares of common stock, which includes 62,285 shares sold to the Bank's Employee Stock Ownership Plan, for gross offering proceeds (before deducting offering expenses) of approximately $8.9 million based on the offering price of $10.00 per share.  The Company has outstanding 889,781 shares of common stock.

The Company's common stock is expected to be quoted on the OTCQB Market operated by the OTC Markets Group beginning on or about August 1, 2025 (ticker symbol SBMW).

Persons wishing to confirm their stock orders may do so by contacting the Stock Information Center at (312) 521-1600, which is open between 9:00 a.m. and 4:00 p.m., Central time, Monday through Friday, except on bank holidays.

The Company's transfer agent, Pacific Stock Transfer Company, plans to mail Direct Registration System ("DRS") Book-Entry statements for the shares purchased in the offering, and interest checks, on or about August 1, 2025. Persons wishing to contact Pacific Stock Transfer Company may do so by phone at (702) 361-3033 or via email to info@pacificstocktransfer.com.

Luse Gorman, PC served as legal counsel to the Company and the Bank.  Performance Trust Capital Partners, LLC acted as marketing agent for the Company in connection with the stock offering, and Silver, Freedman, Taff & Tiernan LLP served as legal counsel to Performance Trust Capital Partners, LLC.

Forward-Looking Statements Disclosures

This press release contains certain forward-looking statements about the conversion and stock offering.  Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts.  They often include words such as "plan," "expect," "anticipate," and "intend" or future or conditional verbs such as "would," "should," "could," "may" or words of similar import.  Forward-looking statements are subject to risks and uncertainties.  Certain factors that could cause actual results to differ materially from expected results include possible unforeseen delays in delivering DRS Book-Entry statements or interest checks and/or delays in the start of trading due to market disruptions or otherwise.

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SOURCE Security Midwest Bancorp, Inc.

FAQ

What is the IPO price for Security Midwest Bancorp (SBMW) stock?

Security Midwest Bancorp's IPO price was set at $10.00 per share, with the company selling 889,781 shares.

When will Security Midwest Bancorp (SBMW) start trading?

SBMW stock is expected to begin trading on the OTCQB Market on or about August 1, 2025.

How much money did Security Midwest Bancorp raise in its IPO?

The company raised approximately $8.9 million in gross proceeds through the sale of 889,781 shares at $10.00 per share.

How many shares were sold to the Employee Stock Ownership Plan?

62,285 shares were sold to the Bank's Employee Stock Ownership Plan as part of the IPO.

How can shareholders confirm their Security Midwest Bancorp stock orders?

Shareholders can confirm their orders by contacting the Stock Information Center at (312) 521-1600, open from 9:00 a.m. to 4:00 p.m. Central time, Monday through Friday.