San Bruno Company Seeks $125M With IPO

Reuters reported that Provident Mortgage Capital Associates, a hybrid mortgage real estate investment trust based in San Bruno, is looking to raise $124.5 million with its initial public offering, according to a regulatory filing submitted Tuesday.

The company—which was formed by private mortgage lender Provident Funding to acquire residential mortgage loans, residential mortgage-backed securities and other mortgage-related assets—said in a filing with the U.S. Securities and Exchange Commission that it plans to use most of the proceeds from the offering to purchase agency residential mortgage-backed securities, according to Reuters. Agency residential mortgage-backed securities are issued by government agencies such as Fannie Mac or Freddie Mac.

The initial public offering is expected to be 8.3 million shares at $15 per share.

Provident initially filed for an IPO of $300 million in March last year, but profits at REITs have since declined because of higher refinancing activity in the mortgage market, Reuters reported.

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