Shares of the previously announced offering of PennyMac Financial Services Inc. stock have been priced.
Fidelity Investments Charitable Gift Fund in Boston, which is the largest shareholder in the Moorpark firm, will sell more than 5.5 million shares at $16.50 a share.
The price, announced Wednesday, represents a 4 percent discount from the closing price the previous day. On Thursday, shares closed down 49 cents, or about 3 percent, to $16.08 on the New York Stock Exchange.
Prior to the sale, Fidelity had 6.1 million shares, for a stake of more than 29 percent. After the sale, its stake will be about 2.6 percent in the company, which has 20.8 million shares outstanding.
The shares available in the offering were donated to the charitable fund by New York asset manager BlackRock Inc., which still has a position in the company, said Christopher Oltmann, director of investor relations with PennyMac.
Citigroup Global Markets Inc. is acting as the sole book-running manager and sole underwriter for the offering. Citigroup will have the option to purchase up to an additional 555,455 shares from Fidelity.
PennyMac is not selling any shares and will receive no compensation from the offering.
The sale comes a month after PennyMac reported profit and revenue figures in its fourth quarter that fell short of analysts’ estimates due to a drop in loan originations.
The Moorpark company reported net income of $6.4 million (32 cents) for the fourth quarter ended Dec. 31 on revenue of $90 million.
Analysts on average had expected net income of 34 cents a share on revenue of $101 million, according to Thomson Financial Network.
The company produces and services U.S. residential mortgage loans and is an affiliate of publicly held mortgage REIT PennyMac Mortgage Investment Trust. Stanford Kurland, the former president of Countrywide Financial, is chief executive of both companies.