Dynex Capital, Inc. Announces Public Offering of Common Stock
Dynex Capital announced an underwritten public offering of 10,500,000 shares of its common stock, with BTIG acting as the sole book-running manager. The company has also granted underwriters a 30-day option to purchase up to an additional 1,575,000 shares. The offering aims to raise funds for acquiring additional investments and general corporate purposes. The offering is subject to market conditions, and there is no guarantee it will be completed. The offering is being made under Dynex Capital's existing shelf registration statement that has been declared effective by the SEC. Potential investors can access the prospectus on the SEC website or contact BTIG for more information.
- Public offering of 10,500,000 shares potentially increasing capital for investments.
- Additional 1,575,000 shares may be sold if underwriters exercise their option.
- Funds intended for acquiring more investments and general corporate purposes.
- Offering is managed by BTIG, a reputable book-running manager.
- Dynex operates as a REIT, focusing on long-term returns through diversified real estate financing.
- Public offering may result in stock dilution for existing shareholders.
- No assurance that the offering will be completed, introducing uncertainty.
- Market conditions could negatively affect the success of the offering.
- Potential impacts on stock price due to the large number of shares being offered.
Insights
Dynex Capital's announcement to issue a public offering of 10,500,000 shares of its common stock is a significant event, primarily from a financial and investment perspective. Public offerings can have various implications for both the company and its investors.
In the short term, the increase in shares can lead to share dilution. This means that current shareholders' ownership percentages will decrease, which could potentially lead to a short-term dip in the stock price. However, it's important to see the larger picture. The raised capital can provide the company with necessary funds to acquire additional investments and support general corporate purposes. If these investments are successful, they can enhance long-term growth and profitability.
Additionally, the fact that the offering is being managed by BTIG, a well-known investment bank, adds a layer of credibility and suggests that there's substantial interest and confidence in Dynex's strategy.
From a retail investor perspective, this development requires a careful evaluation of both the immediate potential dilution and the long-term benefits. Understand that while this may put short-term pressure on the stock price, the company's intended use of the proceeds for acquisitions could generate value over time.
In summary, keep an eye on how the company deploys the newly raised funds and whether these investments align with their stated goals of disciplined capital allocation and risk management.
BTIG is acting as the sole book‑running manager for the offering.
The offering is being made pursuant to the Company’s existing shelf registration statement that has been declared effective by the Securities and Exchange Commission (the “SEC”). The offering of these securities will be made only by means of a prospectus and a related prospectus supplement that should be read prior to investing. Copies of the preliminary prospectus supplement and accompanying prospectus related to the offering may be obtained, when available, by visiting EDGAR on the SEC website at http://www.sec.gov or by contacting: BTIG, LLC, 350 Bush Street, 9th Floor,
The Company plans to use the net proceeds it receives from the offering to acquire additional investments, consistent with its investment policy, and for general corporate purposes.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.
About Dynex Capital
Dynex Capital, Inc. is a financial services company committed to ethical stewardship of stakeholders' capital; employing comprehensive risk management and disciplined capital allocation to generate dividend income and long-term total returns through the diversified financing of real estate assets in
Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this press release that are not historical facts, including statements relating to the proposed offering, the Company’s intended use of proceeds from the offering and other statements that use words such as “expect,” “intend,” “may,” “plan,” “will,” “would,” and similar terms, are “forward-looking statements” that involve risks and uncertainties including, but not limited to, general economic and market conditions. For a discussion of other risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in the Company’s Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and other reports filed with the SEC. The Company cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in their expectations or any change in events, conditions, or circumstances on which any such statement is based.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240605590138/en/
Alison Griffin
(804) 217-5897
Source: Dynex Capital
FAQ
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