Two mortgage companies are completing initial public offerings this week. One of the companies will use proceeds to expand its mortgage servicing portfolio, while the other will make business investments.
A public offering of shares of Cherry Hill Mortgage Investment Corp. has closed, according to an announcement Wednesday.
The offering was for 6.5 million shares of Cherry Hill’s common stock at a public offering price of $20 a share.
An additional 1 million common shares were also sold.
Cherry Hill — which acquires, invests in and manages U.S. residential mortgage assets — is externally managed by Cherry Hill Mortgage Management LLC, an affiliate of Freedom Mortgage Corp.
Proceeds will be used to acquire mortgage servicing rights from Freedom Mortgage, which says it is licensed in 50 states.
Shares of Cherry Hill trade on the NYSEÂ under the symbol CHMI.
Another IPO expected to close this week is Stonegate Mortgage Corp.
The Indianapolis-based firm announced plans for the offering in July.
Stonegate expects to sell 7.1 million common shares priced between $20 and $22 each.
Net proceeds from the offering are expected to be around $136.0 million, though that number could rise to $156.9 million if the underwriters’ option to purchase additional shares is exercised in full.
“We intend to use the net proceeds of this offering to make investments related to our business and for other general corporate purposes,” a filing with the Securities and Exchange Commission said. “Additionally, we may choose to expand our business through acquisitions of or investments in other businesses using cash or shares of our common stock. However, we have no commitments with respect to any such acquisitions or investments at this time.”
Stonegate shares will also trade on the NYSE under the symbol SGM.
