Rocket Companies, the parent company of Quicken Loans and Rocket Mortgage, has set the bar for its upcoming initial public offering.
The mortgage giant is targeting a haul of $3.3 billion from its public offering of 150 million shares, Bloomberg reported. The IPO is slated to price on August 5, according to filings cited by the report.
Rocket filed for an IPO earlier this month, disclosing an annual profit over the past three years.
The company was founded by billionaire Dan Gilbert. Quicken Loans was one of the non-bank lenders that saw business take off in the wake of the 2008 financial crisis to fill the void in home lending left by banks. It’s since grown to become the largest retail mortgage lender in the U.S., a highly fragmented space where the five largest firms accounted for just 17 percent of all retail mortgages issued in 2019.
Though forbearances as of June 30 ticked up to 5.1 percent of the company’s serviced loans, mortgage activity has remained steady for Rocket Companies. The company reported $1.36 billion in total revenue in the first quarter, mostly from origination fees and selling the loans on the secondary market. It originated nearly $52 billion in residential mortgages in the first quarter and planned to do $75 billion in the second quarter.
Rocket Companies generated $79 million in profit in the first quarter, the company said in its S1.
[Bloomberg] — Erin Hudson