actually mtge 'upped the offering size' from 18 to 20 million shares plus an extra 3 million exercisable by the underwriters for 30 days. That 30 day option is a GIFT as it will expire very near the likely date of that the next dividend is announced. I was expecting the extra 3 million to be sold together with the initial 20 million offering, but it looks like they are waiting for some additional price movement. If they wait the full 30 days - that will put a damper on any dividend run-up.
Are you surprised that there has been no SPO for AGNC? It's now trading above book. I figured they'd wait till the MTGE offering settles, but we're getting late in the qtr - you'd guess that it would need to occur soon if it is going to happen - or do you think they will wait till next qtr?
First I've heard that they increased the base size of the offering, but that's the news process fer yuh.
The option isn't a "gift", as it's there to cover shares the underwriters already shorted to the brokers. They place 115% of the issue at once, 100% from the company and 15% as a short. Any that they don't have to buy from the market at the offering price to prop the price up, they go to the company and buy at the offering price to cover the short. It's a wash for the underwriters, except in the rare case the market is hammering the stock so hard that the underwriters can't keep the price at the offering level, and they end up buying shares for less. Then they actually make money, but it also looks like they ripped off the company and the brokers and the clients and the market, so they do not want any part of that. FB's underwriters are still hearing about it.