(By Balachander) Five Oaks Investment Corp., an investor in mortgage-backed securities, has filed to raise up to $115 million in an initial public offering of its shares.
The filing with the U.S. federal regulators did not disclose how many shares Five Oaks plan to offer or the pricing terms.
Five Oaks commenced operations in May 2012 after raising $26.2 million net proceeds in a private placement.
The company is managed by Oak Circle Capital Partners LLC, in which a subsidiary of XL Group Plc (NYSE: XL) holds a minority stake.
Oak Circle has increased Five Oaks' net asset value from $26.2 million to $32.6 million as of September 30, 2012, representing a 24.4 percent increase, Five Oaks disclosed in a regulatory filing.
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The company plans to use the net proceeds from the offering to purchase Agency and Non-Agency RMBS and $103.1 million of RMBS on a non-GAAP basis.
RMBS means mortgage-backed securities that are collateralized by residential mortgages.
As of September 30, 2012, Five Oaks owned $80.4 million of RMBS on a GAAP basis.
Five Oaks plans to list on the New York Stock Exchange under the symbol "FOIC."
Barclays and Credit Suisse are are lead underwriters to the offering.