American Capital Mortgage shares sink in debut

AP News
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Posted: Aug 04, 2011 11:42 AM
American Capital Mortgage shares sink in debut

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.