Quicken Loans parent sells shares in IPO below target to raise $1.8 billion

16Views

August 6, 2020

Rocket Companies Inc, the parent of U.S. mortgage lender Quicken Loans, said its initial public offering (IPO) was priced at $18 per share on Wednesday, below a target range, and that it sold fewer shares than planned.

Rocket sold 100 million shares to raise $1.8 billion in the IPO, which valued the company at around $36 billion. The company had aimed to sell 150 million shares at a target price range of $20-$22 per share.

The IPO pricing and deal size suggests Rocket struggled to convince investors its mortgage platform business justified a valuation conferred to a technology company rather than a financial services firm.

At $18, it is now the third-largest U.S. IPO of 2020, excluding blank-check companies. Within its original $20-$22 range, Rocket would have been the largest IPO of a U.S. company of the year so far.

The Detroit-based company, founded by billionaire Dan Gilbert in 1985, said earlier this month it expects a profit of more than $3 billion in the second quarter, compared with a loss in the same period of last year.

Higher borrowings by U.S. consumers in a historically low-interest environment has led to a surge in the company’s income.

Rocket shares are due to start trading on the New York Stock Exchange on Thursday under the symbol “RKT”.

Also Watch

Incessant Rains Batter Mumbai & Adjoining Areas, IMD Predicts Rains Will Intensify In Next 24 Hrs

Goldman Sachs, Morgan Stanley, Credit Suisse and JPMorgan are among underwriters for the IPO.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Array
(
[videos] => Array
(
[0] => Array
(
[id] => 5f2b7b19db1d45129a348a23
[youtube_id] => -4HxSN1j_5Q
Quicken Loans parent sells shares in IPO below target to raise $1.8 billion => Incessant Rains Batter Mumbai & Adjoining Areas, IMD Predicts Rains Will Intensify In Next 24 Hrs
)

[1] => Array
(
[id] => 5f2b7669cc17de12942f2d08
[youtube_id] => 6D6o9J7lNG0
Quicken Loans parent sells shares in IPO below target to raise $1.8 billion => Sushant Death Probe: Rhea Under ED Scanner; Disha Salian’s PM Report Rules Out Foul Play
)

)

[query] => https://pubstack.nw18.com/pubsync/v1/api/videos/recommended?source=n18english&channels=5d95e6c378c2f2492e2148a2,5d95e6c278c2f2492e214884,5d96f74de3f5f312274ca307&categories=5d95e6d7340a9e4981b2e10a&publish_min=2020-08-03T09:09:02.000Z&publish_max=2020-08-06T09:09:02.000Z&sort_by=date-relevance&order_by=0&limit=2
)

Quicken Loans parent sells shares in IPO below target to raise $1.8 billion

Also Watch

Speak Your Mind

LEAVE A REPLY Cancel reply

Get in Touch

Recommend for You

Oh hi there It’s nice to meet you.

Subscribe and receive our weekly newsletter packed with awesome articles that really matters to you!

You might also like

EDITOR PICKS

POPULAR POSTS

POPULAR CATEGORY

About Us

Follow Us

Support Us & Be a Patreon

Add QNewsHub to your Homescreen!

Oh hi there
It’s nice to meet you.