(By Balachander) Five Oaks Investment Corp., an investor in mortgage-backed securities, plans to sell 5.7 million shares at $15 apiece to raise $85.5 million in an initial public offering (IPO) of its stock.
The company, which had earlier filed to raise up to $115 million from the IPO, is managed by Oak Circle Capital Partners LLC, in which a subsidiary of XL Group Plc (NYSE: XL) holds a minority stake.
Five Oaks commenced operations in May 2012 after raising $26.2 million net proceeds in a private placement.
Oak Circle has increased Five Oaks' net asset value from $26.2 million to $32.3 million as of Dec. 31, 2012, representing a 23.3 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, which are mortgage-backed securities that are collateralized by residential mortgages.
As of Dec. 31, 2012, Five Oaks owned $81.0 million of RMBS on a GAAP basis.
Five Oaks plans to list on the New York Stock Exchange (NYSE) under the symbol "OAKS." It had previously planned to list on the NYSE under the symbol "FOIC."
Barclays and Credit Suisse are are lead underwriters to the offering.