Shares of American Capital Mortgage Investment Corp. are dropping in the real estate investment trust's trading debut.
The subsidiary of asset management company American Capital Ltd. sold 8 million shares at $20 per share in an initial public offering. It had planned to sell 17.5 million shares.
It also sold 2 million shares to its parent company.
The stock fell to $1.21, or 6.1 percent, to $18.79 in late morning trading Thursday. Its shares trade under the ticker symbol "MTGE" on the Nasdaq.
The Bethesda, Md.-based company expects to raise $159.1 million after expenses in the offering.
Mortgage REITs aim to borrow money at low rates, buy up mortgages that pay a higher rate, and profit from the difference.