Ellington Financial LLC, a specialty finance company, is planning to raise up to $200 million in an initial public offering, according to a prospectus filed on Tuesday.
Ellington Financial will be managed and advised by an affiliate of hedge fund Ellington Management Group LLC, which invests in residential mortgage backed securities (RMBS).
Ellington Financial, based in Connecticut, said in its prospectus that it plans to use the IPO proceeds to buy and manage mortgage-related assets, including securities backed by subprime residential mortgages, and mortgage-backed securities for which principal and interest payments are guaranteed by the U.S. government.
As of March 31, 2009, Ellington had an aggregate portfolio of RMBS with a value of about $366.7 million, derivatives contracts with a net value of $97.6 million and total shareholders' equity of $250.2 million, according to the prospectus.
The filing did not set an estimated price range for the stocks or indicate a timeline for launching the IPO.
The company has applied to list on the New York Stock Exchange under the symbol EFC. (Reporting by Phil Wahba; Editing by Tim Dobbyn)