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Quicken Loans Files for IPO After Three Years of Annual Profits

Rocket Companies, Inc. — parent company for Quicken Loans and Rocket Mortgage — has filed for an initial public offering (IPO) to allow the trading of its shares on the U.S. stock market after disclosing an annual profit for the past three years. This is according to original reporting at Bloomberg.

“The Detroit-based company, which owns Rocket Mortgage and Quicken Loans, listed the size of the offering in its filing as $100 million, a placeholder amount that will likely change,” writes Bloomberg’s Crystal Tse and Michael Hytha about the offering. “Rocket Companies describes itself as the largest retail mortgage lender in the U.S.”

The company is led by sports owner Dan Gilbert, who has an estimated net worth of $7.1 billion, according to the outlet. In addition to co-founding Quicken Loans and holding company Rock Ventures, Gilbert owns National Basketball Association (NBA) team the Cleveland Cavaliers as well as developmental hockey and basketball teams that also reside in the Cleveland area.

The IPO comes as the market for such offerings in the U.S. has seemed to begin a rebound, according to Bloomberg.

“The U.S. IPO market has bounced back after a slump brought on by the coronavirus pandemic,” the outlet writes. “A combined total of $134 billion was raised in the second quarter through all equity issuance, the busiest quarter on record.”

The offering is reportedly being led by Goldman Sachs, Morgan Stanley, Credit Suisse Group, JPMorgan Chase and Royal Bank of Canada, and will operate on the New York Stock Exchange (NYSE) under the symbol “RKT.”

Earlier this year, Quicken Loans halted all activity related to its reverse mortgage division, One Reverse Mortgage. Existing One Reverse employees were notified that they would be transferred to other positions at Quicken Loans, with the decision to halt One Reverse reportedly stemming from a desire by the parent company to focus its efforts on the Rocket Mortgage brand.

One Reverse was to complete its pipeline of reverse mortgage loans in process at the time of the decision, but is not expected to originate any new reverse mortgage loans, sources previously told RMD.

In late 2019, One Reverse emerged as the number 2 reverse mortgage lender for the calendar year, a rise from its 2018 ranking in which it sat at 4th place on that year’s top 10.

Read the story on the IPO at Bloomberg.