Capitol Federal Financial in Topeka, Kan., said Monday that it plans to raise up to $1.96 billion by converting from a mutual holding company to a stock company.

The $8.5 billion-asset Capitol Federal said it had received conditional approval from the Office of Thrift Supervision to take the second step of its conversion. It is offering between 144.5 million and 195.5 million shares of common stock for $10 a share.

The mutual holding company owns 71% of Capitol Federal's outstanding stock. In the conversion, that would be offered to investors as common stock.

In a registration statement filed with the Securities and Exchange Commission, the company said it initially plans to use a substantial portion of the proceeds to invest in short-term investments and government agency mortgage-backed securities, as well as investment-grade debt obligations.

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