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Investing.com -- ARMOUR Residential REIT Inc (NYSE:ARR) stock dropped 3.4% on Wednesday after the company announced it had priced an underwritten public offering of 18.5 million shares of common stock.
The mortgage real estate investment trust said the offering is expected to generate approximately $302.5 million in gross proceeds, which could increase to around $347.8 million if underwriters exercise their 30-day option to purchase up to an additional 2.775 million shares.
Goldman Sachs & Co (NYSE:GS). LLC is acting as the sole bookrunner for the offering, with BUCKLER Securities LLC serving as co-manager. The transaction is expected to close on or about August 7, 2025, subject to customary closing conditions.
ARMOUR plans to use the net proceeds from the offering to acquire additional mortgage-backed securities and other mortgage-related assets in line with the company’s investment objectives and strategies.
The share issuance represents a significant expansion of ARMOUR’s outstanding stock, which likely contributed to the price decline as investors reacted to potential dilution of their holdings.
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