Georgia-based real estate finance company Angel Oak Mortgage, Inc. has filed paperwork to go public. The company focuses on acquisition and investment in first lien, non-qualified mortgage loans, with the goal of generating attractive returns for stockholders through cash distribution and capital appreciation.
Since beginning operations in September 2018, Angel Oak Mortgage has taken in $303 million in equity capital investments, according to IPOScoop. Details of the company’s S-1 registration statement were released last week. What can we expect from the Angel Oak Mortgage IPO?
Angel Oak Mortgage IPO news
Angel Oak Mortgage, Inc. proposes to list shares publicly on the New York Stock Exchange before the end of this week. The proposed price range is $20–$21 per share. Through the IPO, the company will raise $165 million for further asset acquisition and corporate purposes.
Angel Oak Mortgage versus its competitors
AOMR is a mortgage REIT, which means it provides investment opportunities to individual investors, much like a mutual fund provides opportunities to invest in the stock market. Since it focuses on non-QM loans, they are somewhat riskier than agency-backed loans that many other REITs focus on, according to MSNMoney.
Angel Oak Mortgage's competitors in the REIT space include Colony Capital, Ryman Hospitality Partners, Kite Realty Group Trust, and many more.
Angel Oak Mortgage is profitable.
The real estate company recorded a net profit of $736 million for the 12 months ended December 31, 2020, which indicates profitability.
Angel Oak Mortgage has a portfolio of mainly mortgage loans and other assets related to mortgages that are underwritten in-house with Angel Oak Mortgage Lending. The company's assets as of March 31, 2021, totaled $534.9 million, which also incorporates $481 million in non-QM loans and other assets, according to IPOSccop.
Angel Oak Mortgage's valuation, stock price, and stock symbol
The Angel Oak IPO will take the company public on the NYSE at a price between $20 and $21 per share. The new ticker symbol on the exchange will be "AOMR." Through the offering of 8.1 million shares, Angel Oak expects to raise $165 million. Angel Oak will command a $537 million market valuation at the time of IPO.
The Canadian Pension Plan Investment Board, a newer investor in AOMR, intends to purchase $40 million worth of shares through a concurrent private placement.
The proceeds of the IPO will be used for general corporate purposes and for acquisitions of more non-QM loans and target assets.
When is Angel Oak Mortgage going public?
How to buy Angel Oak Mortgage IPO stock
Once Angel Oak Mortgage is publicly traded on the NYSE, retail investors will be able to buy and sell shares of AOMR stock easily through their brokerage.