Crexus Investment Corp lowered the number of shares it will sell in its initial public offering by 60 percent, but increased the shares it plans to sell privately to its manager.
The IPO is expected to price on Wednesday after U.S. markets close.
Crexus, which hopes to qualify as a real estate investment trust, said in an updated prospectus filed on Wednesday with the U.S. Securities and Exchange Commission that it now expects to sell 13.3 million shares in the IPO, down from the 33.3 million it had estimated in August.
The estimated price of $15 per share was unchanged.
Crexus said in the filing that concurrent with the IPO, it will privately sell shares to its manager, Annaly Capital Management Inc, giving Annaly 25 percent to 35 of its outstanding stock.
Crexus originally planned to sell a 9.8 percent stake to Annaly, a REIT. A subsidiary of Annaly will manage Crexus.
Crexus estimated net proceeds from the IPO would be $191 million. It will use the proceeds to acquire, manage and finance commercial mortgage loans, commercial real estate debt, commercial mortgage-backed securities, and other commercial real estate-related assets.
The underwriters, led by Deutsche Bank Securities and Bank of America Merrill Lynch, will have an option to buy an additional 2 million shares to cover over-allotments.
Crexus plans to list on the New York Stock Exchange under the symbol CXS.
(Reporting by Phil Wahba; editing by John Wallace)