The uneven stock performance from nonbank lenders that have recently gone public has given pause to New Residential Investment, which was considering its own IPO for the New Rez division.
“We think that it will create more value for shareholders by separating the company and bringing it into the public markets,” said Michael Nierenberg, its chairman, CEO and president, on its fourth quarter conference call. “But as you’ve seen from some of the recent attempts…some of them have gone OK; others have not gone as well.”
A confidential registration statement was filed in November. If there was to be a public offering, the two companies would still be intertwined as New Residential would likely maintain a substantial stake in a publicly-traded NewRez, he said.
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