Residential mortgage company PennyMac Financial Services Inc. raised $200 million in an initial public offering that began trading on Thursday.
The Moorpark company, led by former Countrywide Financial President Stanford Kurland, focuses on the production and servicing of U.S. residential mortgage loans. PennyMac Financial, an affiliate of publicly held mortgage REIT PennyMac Mortgage Investment Trust, offered 11.1 million shares at $18.
The company expects to close the offering on Tuesday. Underwriters, which include Citigroup Global Markets Inc., BofA Merrill Lynch and Credit Suisse Securities, have a 30-day option to purchase up to an additional 1.6 million shares at the IPO price minus an underwriting discount.
Net proceeds will be used to grow PennyMac’s mortgage banking business.
Shares, trading under the symbol PFSI, closed up $1.10, or 6 percent, to $19.07 on the New York Stock Exchange.