Jan 30 (Reuters) - 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.