Two IPO's Hit: Globe Specialty Metals & PennyMac (GSM,PMT)

We have two IPO’s today, which sort of got lost in the earnings season shuffle.  Despite the recent market strength and the performance of recent IPO’s, both of these have been disappointing.

Globe Specialty Metals (NYSE: GSM) priced 14 million shares at $7.00, at the low end of its $7.00 to $9.00 range.  We also have a 16 million share IPO of PennyMac Mortgage Investment (NYSE: PMT) at $20.00 per share, although this was cut from 20 million shares.

Globe Specialty Metals raised $98 million, and this is a producer of silicon metal and silicon based alloys.  That 14 million shares at $7.00 was at the low end of the $7.00 to $9.00 range. Credit Suisse, Jefferies and J.P. Morgan were listed as the lead managers on the IPO.

PennyMac Mortgage Investment Trust (NYSE: PMT) is a newly formed mortgage REIT.  Its 16,000,000 share offering was at $20.00 per share, raising $320 million before fees if you include a private placement of shares.  The company will use the funds to purchase residential mortgage loans and mortgage-related assets, and many will be distressed assets. Merrill Lynch, Credit Suisse, and Deutsche Bank are listed as the joint book-runners and JMP Securities and Stifel Nicolaus are co-managers.

Jon C. Ogg
July 30, 2009