Capitol Federal Financial Inc. in Topeka, Kan., is making another attempt at a second-step conversion.

The $8.5 billion-asset company tried to convert from a mutual holding company to a fully public company earlier this summer, but was unable to sell the enough shares at the stated price.

After obtaining a second appraisal, Capitol Federal said Monday that it had received conditional approval from the Office of Thrift Supervision to begin a new offering of between 118 million and 159 million shares of common stock at $10 a share.

The new appraisal lowers the potential proceeds of the offering to $1.5 billion from $1.9 billion, and lowers the price-to-tangible book value from 92% to 84%. 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, Capitol Federal said it initially plans to use a substantial portion of the proceeds to invest in short-term investments and government agency mortgage-backed securities. It would also invest in investment-grade debt obligations.

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