Jan 30 Zais Financial Corp, a Real Estate
Investment Trust (REIT) that invests in residential
mortgage-backed securities, said it expects to sell 5.65 million
shares in its initial public offering at $21.25 each.
At the expected price, the offering will raise about $120
million. Zais Financial had earlier this month filed with
regulators to raise up to $140 million in its IPO.
The company, which holds residential mortgage-backed
securities (RMBS) with an estimated market value of $163.4
million as of Sept. 30, will be the only seller in the offering.
The New Jersey-based mortgage REIT generates income by the
difference between income earned on its assets and the cost of
its financing and hedging activities.
It recorded net income of $17.6 million for the nine months
ended Sept. 30, according to a regulatory filing.
The trust is managed by Zais REIT Management, a unit of Zais
Group, a privately held investment adviser with about $5.5
billion of assets under management at Sept. 30.
The REIT will list its shares on the New York Stock Exchange
under the symbol "ZFS".
Deutsche Bank Securities, Citigroup, Barclays and Credit
Suisse are the lead underwriters to the offering.