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Thursday, Sep 28, 2023

PennyMac Gains Ground After IPO

Shares of PennyMac Financial Services continued to gain ground Friday a day after the company raised $200 million in an initial public offering. The Moorpark company, led by former Countrywide Financial President Stanford Kurland, produces and services U.S. residential mortgage loans. PennyMac Financial, an affiliate of publicly held mortgage REIT PennyMac Mortgage Investment Trust, offered 11.1 million shares at $18. Shares trade under the symbol PFSI. They closed up 85 cents, or more than 4 percent, to $19.10 on the New York Stock Exchange on the first day of trading. Shares gained another 50 cents, or more than 2 percent, to close at $19.60 on Friday. The company expects to close the offering on Tuesday. Underwriters, which include Citigroup Global Markets Inc., BofA Merrill Lynch and Credit Suisse Securities, have a 30-day option to purchase up to an additional 1.6 million shares at the IPO price minus an underwriting discount. Net proceeds will be used to grow PennyMac’s mortgage banking business.

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