Mortgage Lender Quicken Loans Files for IPO – Business Observer
Mortgage company Quicken Loans filed an initial public offering, one of the few companies to attempt to go public after the start of the coronavirus pandemic.
Rocket companies, the parent company of Quicken Loans, filed the paperwork On Tuesday, after a confidential filing with the Securities Exchange Commission last month, the Financial Times first reported.
Quicken Loans owned by Detroit businessman Dan Gilbert, which also owns the The Cleveland Cavaliers, and an extensive real estate portfolio in Detroit under the name Bedrock strait.
Gilbert founded Quicken Loans in 1985 as an alternative lender and made it the largest mortgage lender in the United States. He exceeded Wells fargo in 2018 with more than $ 80 billion in loans, then issued $ 145 billion in loans in 2019, according to FT.
This helped the company’s revenue grow 46% in 2019 to reach $ 892 million based on $ 5.1 billion in revenue, according to the record. Quicken Loans also recorded $ 1.8 billion in revenue in the first three quarters of 2020, before the shock of the pandemic, up from $ 727 million in the same period last year, an increase of 148 %.
The company plans to use the ticker symbol RKT and has indicated that the IPO size is $ 100 million as a placeholder number. Rocket also owns Rocket Mortgage, a product used by Quicken Loans to estimate and create loans online.
A successful IPO would be a win for the economy, as well as for Detroit, the company’s home port. Gilbert moved Quicken Loans to downtown Detroit in 2010 from the outskirts of the city, with the goal of rebuilding the decimated city. Gilbert’s Bedrock now owns large swathes of downtown, which has seen a resurgence in the past decade.