Invesco Mortgage Capital Inc. (IVR) said on Wednesday that it intends to commence a public offering of 7 million shares of its common stock.
 
Invesco Mortgage will grant the underwriters a 30-day option to purchase up to 1.05 million additional shares to cover over-allotments.
 
The company intends to use the proceeds from the offering for additional acquisitions of residential and commercial mortgage-backed securities and mortgage loans and other general corporate purposes.
 
Invesco Mortgage is externally managed and advised by Invesco Advisers Inc., a division of Invesco Ltd. (IVZ).
 
Credit Suisse Securities (USA) LLC, a division of Credit Suisse Group (CS) and Morgan Stanley & Co. Incorporated, a division of Morgan Stanley (MS), are acting as joint book-running managers for the offering.
 
Invesco Ltd.’s third quarter earnings came in at 24 cents per share, a penny ahead of the Zacks Consensus Estimate. However, this compares unfavorably with 33 cents in the prior-year quarter. The appreciation of the global equity markets and comparatively favorable foreign exchange rates have led to an increase in the company’s assets under management (AUM), which are up both sequentially as well as year-over-year.
 
Though we expect an improvement in operating leverage from Invesco Limited’s expense reduction initiatives and improved global flows due to its broad diversification, we believe such improvements would be somewhat limited in the near term, given the ongoing volatility in the equity markets worldwide. Earnings are also susceptible to foreign exchange fluctuations.
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