Invesco’s REIT Launches Public Offering

[Update 1] Global investment management company Invesco (IVZ) along with real estate investment trust (REIT) Invesco Mortgage Capital (IVR) today released its pricing of an initial offering of 8.5m shares of Invesco Mortgage at $20 per share as it prepares for its first day of trading. Invesco Mortgage left underwriters the option to purchase an additional 1.27m common shares to cover any over-allotments — an option that expires after 30 days. In addition the the public offering, the compnay will place 75,000 shares of common stock at $20 per share with its manager and 1.42m limited partner units of its IAS Operating Partnership subsidiary at $20 per unit with a subsidiary of parent company Invesco. Invesco Mortgage’s shares begin trading today on the New York Stock Exchange under the ticker symbol “IVR.” It sold at $19.46 in late-morning trading, slightly below its offering price after this story went to press. The public offering represents the latest in a series of moves by US REITs to attract public capital over more traditional, private funds. The offerings and placements together will yield an estimated $195.5m in net proceeds after deducting underwriting discounts and assume the underwriters’ over-allotment option is not exercised. Invesco announced plans for the public offering in early May. Its Invesco Mortgage, a newly formed REIT, was set up with a goal to invest in agency and non-agency RMBS, CMBS and mortgage loans in concert with government funding through the Public-Private Investment Program and the Term Asset-Backed Securities Lending Facility. Write to Diana Golobay. Disclosure: The author held no relevant investment positions when this story was published. Indirect holdings may exist via mutual fund investments.