Velocity Financial sets IPO terms to be valued at just over $300 million
Velocity Financial Inc. disclosed Monday that it set terms for its initial public offering, in which the real estate finance company expects to raise up to $116 million and be valued at up to $304.0 million. The company said it was offering 7.25 million shares for sale in the IPO, which is expected to price between $14 and $16 a share. The stock is expected to list on the NYSE under the ticker symbol "VEL." Velocity said there will be 19 million shares outstanding after the offering. The lead underwriters of the offering are Wells Fargo Securities, Citigoup, JMP Securities and Raymond James. Velocity said it expects 2019 net income of $16.8 million to $18.6 million, compared with net income of $10.5 million in 2018. The company said it primarily originates and manages investor loans secured by one-to-four unit residential rental and small commercial properties. It does not intend to pay dividends "for the foreseeable future." The company is looking to go public at a time the Renaissance IPO ETF has run up 11.7% over the past three months while the S&P 500 has gained 9.8%.
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