Invesco Mortgage Capital Inc. (NYSE: IVR) jumped 17.51% to almost its highest level in a year following retail traders’ discussion about the mortgage REIT on social media. With a 13% short interest, some traders suggested that the stock is a short-squeeze candidate.
Invesco Mortgage surges in high trading volume
Around 83 million shares were traded before midday New York time which is also nine times more than the stock’s three-month daily average volume. This was IVR’s third successive day of gains closing at $4.27 below the 52-week high of $8.40, which the stock hit on June 8. Invesco Mortgage Capital outperformed its rivals Annaly Capital Management Inc., which dropped from 0.11% to $9.44; Starwood Property Trust Inc. rose from 1.64% to $26.1, and AGNC Investment Corp increased 0.16% to $18.68.
Invesco completes $128 million offering
Recently the company announced the price of its public offering of 37.5 million shares of common stock, generating gross proceeds of around $128.625 million before underwriting fees and projected offering expenses. In addition, Invesco Mortgage Capital has granted the underwriters a 30-day option to acquire an additional 5.625 million shares of its common stock in connection with the offering. The company expected the offering to close on June 1, 2021.
The company will use the offering’s net proceeds to pay for its previously announced i=outstanding and issued stock redemption of the 7.75% Series A Cumulative Redeemable Preferred Stock, $0.01 exercise price per share. Equally, the company intends to use the remaining net proceeds for general corporate uses, which may include, but not limited to, repayment of maturing obligations, acquisitions, and capital expenditures.
The company conducted the offering under the terms of a valid registration statement on Form S-3ASR dated February 27, 2019. The prospectus supplement and corresponding base prospectus have been filed with the SEC.