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Mortgage REIT Angel Oak Mortgage prices downsized IPO below the range at $19

June 16, 2021

Angel Oak Mortgage, a mortgage REIT focused on non-qualified loans, raised $137 million by offering 7.2 million shares at $19, below the range of $20 to $21. The company sold 850,000 fewer shares than expected (11%). New investor CPPIB Credit Investments agreed to purchase $40 million worth of shares in a concurrent private placement.

Angel Oak Mortgage invests primarily in newly-originated first lien loans made to higher-quality non-QM (non-qualified mortgage) borrowers. The company's loans are primarily sourced from Angel Oak's proprietary mortgage lending platform and are managed by an affiliate of Angel Oak Capital Advisors. It had total assets of $535 million and a non-QM loan portfolio of $481 million as of March 31, 2021.

Angel Oak Mortgage plans to list on the NYSE under the symbol AOMR. Wells Fargo Securities, BofA Securities, Morgan Stanley, UBS Investment Bank, and B. Riley Securities acted as joint bookrunners on the deal.