Rocket Companies Inc., the parent company of Quicken Loans, officially filed for an IPO, according to the Securities and Exchange Commission (SEC).
“Rocket Mortgage—a name now synonymous with digital mortgage lending—could never have been built if we had taken a short-term view, focused solely on short-term profitability,” said Jay Farner, CEO Rocket Companies, in his letter to the SEC.
Farner added in his letter that Rocket Companies has a “proven record of leading the industry” and being prepared.
“Our digital-first brand is a diver for growth in this highly fragmented market,” he said. “Even with the title of the largest mortgage lender, we believe there is significant opportunity ahead and fresh strategies to reach even more clients.”
Rocket Companies was found in 1985 and Rocket Mortgage has provid3ed more than $1 trillion in loans since its inception, growing its market share from 1.3% in 2009 to 9.2% in Q1 2020.
A report by Bloomberg states the listed size of the offering was $100 million, which is an amount that could change. Rocket Companies’ founder, Dan Gilbert, is worth $7.1 billion.
Bloomberg added that Rocket Companies has stated it earned $97.7 million on revenue of $1.8 billion in three months ended March 31. This is compared to a loss of $299 million on $727 million in revenue a year earlier.
News of the IPO circulated last month, with CNBC reported that it could be the largest IPO of the year. CNBC added that Quicken Loans is working with Morgan Stanley, Goldman Sachs, Credit Suisse, and JPMorgan to manage the deal. Valuation has yet to be decided but CNBC reports that it is “tens of billions of dollars” and possibly one of the largest IPOs of the year.
Quicken Loans CEO Jay Farner told CNBC that March was the “biggest closing month in our company’s history with nearly $21 billion in mortgages closed.”
According to the Mortgage Bankers Association (MBA), mortgage applications continue their resurgence during COVID-19.
Applications rose 2.2% from the prior week, according to the MBA, and purchases were up weekly by 33%.