Real estate finance company Velocity Financial LLC expects to sell 7,250,000 common shares for between $14 and $16 apiece in its IPO.
The company granted underwriters an option to purchase up to an additional 1,087,500 common shares within 30 days after the date of the prospectus to cover overallotments, if any.
Velocity Financial also disclosed in its amended Form S-1 filing that the proposed maximum aggregate offering price of the IPO, inclusive of the overallotment option, is $133.4 million. Estimated net proceeds to Velocity Financial are expected to be $111.2 million, if the overallotment option is exercised in full.
Velocity Financial intends to use about 75% of the gross proceeds from the offering to repay a portion of its outstanding corporate debt, up to a maximum repayment of $75 million in principal amount, plus related prepayment penalties, and the remainder for general corporate purposes.
Wells Fargo Securities LLC, Citigroup Global Markets Inc., JMP Securities LLC and Raymond James & Associates Inc. are underwriters for the IPO.