Reuters reported that Provident Mortgage Capital Associates, a hybrid mortgage real estate investment trust based in San Bruno, is looking to raise $124.5 million with its initial public offering, according to a regulatory filing submitted Tuesday.

The company—which was formed by private mortgage lender Provident Funding to acquire residential mortgage loans, residential mortgage-backed securities and other mortgage-related assets—said in a filing with the U.S. Securities and Exchange Commission that it plans to use most of the proceeds from the offering to purchase agency residential mortgage-backed securities, according to Reuters. Agency residential mortgage-backed securities are issued by government agencies such as Fannie Mac or Freddie Mac.

The initial public offering is expected to be 8.3 million shares at $15 per share.

Provident initially filed for an IPO of $300 million in March last year, but profits at REITs have since declined because of higher refinancing activity in the mortgage market, Reuters reported.

For more news about San Bruno, follow San Bruno Patch on Twitter and "like" us on Facebook. Got Patch in your inbox? Sign up for our newsletter.