Ellington Financial (EFC) said late Monday that it has launched an underwritten public offering of about 8.8 million shares.

The company said it plans to grant its underwriters a 30-day option to purchase up to about 1.3 million additional shares.

The company said net proceeds will be used to redeem its Series A fixed-to-floating rate cumulative redeemable preferred stock, with any remaining proceeds for general corporate purposes.

Shares were down over 2% in extended trading.