Capital Bancorporation Inc., a Cape Girardeau based bank-holding company, has announced a public offering of 600,000 depositary shares.

Each share represents a 1/25th interest in the company's Series C 9.75 percent, increasing-rate, redeemable, cumulative preferred stock.

The Securities and Exchange Commission declared effective the registration statement that was filed on May 7 by Capital Bancorporation, clearing the way for the $12 million offering. The depositary shares were offered to the public at the public offering price of $20 per depositary share through an underwriting group managed by Stifel, Nicolaus & Co., Inc. The issue, which is non-callable for three years, will have an increasing dividend rate in the fourth, fifth, and sixth years of 10, 10.25 and 10.50 percent, respectively.

As previously announced, Capital Bancorporation Inc. has signed an agreement to purchase all of the capital stock of Magna Bank of Southern Missouri from Magna Group Inc. of St. Louis. Magna Bank of Southern Missouri is headquartered in Ozark, a suburb of Springfield, and has banks at nine locations, including Springfield and Branson.

On March 31,1992, Magna Bank of Southern Missouri had total assets of $163,117,000, total deposits of $149,871,000, and total stockholders' equity of $11,894,000. The proceeds of the offering of depositary shares will be used to acquire Magna Bank of Southern Missouri and increase the capital accounts of Capital Bancorporation's subsidiary banks.

Capital Bancorporation Inc. operates 17 banking locations through five subsidiary banks in Southeastern, Central, and Eastern Missouri. The common stock is listed on the NASDAQ National Market System as "CABK." The depositary shares are listed on the NASDAQ National Market System as "CABKZ."