On the day before it was set to go public, loanDepot Inc., announced it would delay its initial public offering amid volatile market conditions. According to a statement filed with the Securities and Exchange Commission on Tuesday, the lender was planning to offer 26 point 4 million shares of its common stock on Friday, valued at 16 to 18 dollars per share. The move was expected to raise 475 million dollars for the company, which was to be valued at 2 point 6 billion dollars.
According to NASDAQ, the company planned to offer as many as 30 million shares. But on Thursday, the company announced that it will postpone the biggest IPO of the week, due to rough conditions in the market. Conditions, have, of course, been stormy on Wall Street to say the least. On Thursday, the Dow Jones Industrial Average dropped 254 points, or nearly 1 point 5 percent. Over the preceding week, it has dropped a total of 2 point 3 percent.
In an address about the economic outlook in the United States and monetary policy at the Economic Club of New York this week, New York Fed President and CEO Bill Dudley praised the progress housing fundamentals have made during the economic recovery. Dudley cited rising house prices and a shift in the constraint more to the supply side, as well an improvement in the National Association of Home Builders’ index in October to its highest level in 10 years.