Two real estate investment trusts lowered the number of shares they expect to sell in initial public offerings on Wednesday to raise only half as much as they had been expected to.
Colony Financial Inc said it would issue only 12.5 million shares at $20 each, according to a filing with the Securities and Exchange Commission, or $250 million. It had been expected to raise $500 million.
Apollo Commercial Real Estate Finance Inc said it would issue 10 million shares, also half of what was expected, at an estimated price of $20 each.
Both companies, created to buy distressed mortgage assets, had delayed their capital-raising plans by a day.
Underwriters for the deals did not say why the issues were delayed, but the postponements were seen as a possible signal of weak demand caused by a glut of similar REITs that have come to market this year and others in the pipeline.
A third REIT created to invest in toxic assets, Foursquare Capital Corp, is set to price Thursday, while Ladder Capital Realty Finance Inc aims to go public next week.
(Reporting by Christopher Kaufman; Editing by Lisa Von Ahn)