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Thursday, Sep 28, 2023

PennyMac Sets Price for Planned IPO

PennyMac Financial Services Inc. plans to offer 11.1 million shares at $17 to $19 each in its planned initial public offering, according to a Monday filing with the Securities and Exchange Commission. The Moorpark company, headed by former Countrywide President Stanford Kurland, said it plans to use the proceeds primarily to expand its residential loan operation. It first announced its IPO plans in February and said it is seeking to raise $200 million. The company is the parent of PNMAC Capital Management LLC, the manager of several real estate investment trusts. They include publicly traded PennyMac Mortgage Investment Trust, an investor in distressed real estate debt. PennyMac Finance Services makes and services residential mortgages. It reported income of $53.3 million for the first quarter ended March 31, up from $19 million during the same period a year earlier. Revenue was up 155 percent to $119 million. The company’s primary investors are New York investment firm BlackRock Mortgage Ventures LLC and HC Partners LLC of Boston. It plans to list on the New York Stock Exchange under the ticker PFSI. The offering is being underwritten by Citigroup, Bank of America Merrill Lynch, Credit Suisse and Goldman Sachs. Shares of PennyMac Mortgage Investment Trust gained 78 cents, or more than 3 percent, to close at $25.25 on the New York Stock Exchange.

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