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American Capital Mortgage shares sink in debut

NEW YORK — Shares of American Capital Mortgage Investment Corp. are dropping in the real estate investment trust’s trading debut.

The subsidiary of asset management company American Capital Ltd. sold 8 million shares at $20 per share in an initial public offering. It had planned to sell 17.5 million shares.

It also sold 2 million shares to its parent company.

The stock fell to $1.21, or 6.1 percent, to $18.79 in late morning trading Thursday. Its shares trade under the ticker symbol “MTGE” on the Nasdaq.

The Bethesda-based company expects to raise $159.1 million after expenses in the offering.

Mortgage REITs aim to borrow money at low rates, buy up mortgages that pay a higher rate, and profit from the difference.

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