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PennyMac prices IPO at $17 to $19

By   /   Tuesday, April 30th, 2013  /   Comments Off on PennyMac prices IPO at $17 to $19

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Moorpark-based PennyMac Financial Services has priced its initial public offering of stock at $17 to $19 per share, indicating plans to raise as much as $211.1 million in its launch on the New York Stock Exchange.

PennyMac, headed by former Countrywide Financial Corp. President Stanford Kurland, employs more than 600 people in Moorpark and more than 1,000 worldwide, according to city officials and company filings.

Since its launch in 2008, the firm has grown rapidly by originating mortgages and buying troubled residential loans from banks, often for pennies on the dollar. The firm’s mortgage banking segment, PennyMac Loan Services, sells and services government-sponsored loans backed by entities such as Fannie Mae, Freddie Mac and the Federal Housing Administration.

In February, PennyMac announced plans to raise upwards of $200 million in capital in its debut on the public markets. The firm has yet to set a date for its IPO, but with the offering priced it will likely be in coming weeks.

Shares of its publicly traded subsidiary PennyMac Mortgage Investment Trust ticked up 3.2 percent to $25.25 on April 30, the day after the parent company priced its offering.

The mortgage investment trust subsidiary went public in July 2011 in an IPO that was met with lackluster enthusiasm from investors. PennyMac Mortgage Investment Trust sold only 16 million shares — below the 20 million it had expected to sell for $20 each — out of the gate in a deal that raised $320 million for the Moorpark operation.

PennyMac, the parent firm, has applied to list its common stock on the New York Stock Exchange under the ticker symbol symbol “PFSI.” It said it plans to sell 11.1 million shares at $17 to $19 each, indicating it could raise between $188.8 million and $211.1 million in the offering.

Under securities rules, the company is in a “quiet period” surrounding its IPO, which means it is not allowed speak to media about its plans.

The company had profits of $118.3 million in 2012 — up 705 percent from a year earlier — according to its filings with the U.S. Securities & Exchange Commission. It reported a return on average equity of 66.8 percent, driven largely by growth in its correspondent lending business.

“We believe that there is significant growth potential yet to be tapped within our existing businesses and also through our expansion into adjacent related businesses,” the firm said in company filings.

Citigroup, BofA Merrill Lynch, Credit Suisse and Goldman, Sachs & Co. are the underwriters for the IPO.

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