That represented an increase of $29.4 billion, or nearly 132%, compared with the three months ended March 31, 2019.įor the first three months of 2020, the company had $97 million in net income, compared with a net loss of $299 million for the same period in 2019.Īs a result, many Wall Street analysts had expected that the initial public offering would be well received by institutional investors. Quicken Loans originated $51.7 billion in home mortgages for the three months ended March 31, according to the SEC filing. Instead of posting losses, like some other digital-driven IPOs, Quicken Loans has been profitable. Unlike other IPOs, Rocket isn't an upstart but instead is a business that has been up and running for the past 35 years. This summer, though, has looked remarkably brighter for stocks and IPOs. economy and sent the stock market spiraling downward. The IPO market, like many things, came to a halt in the spring after COVID-19 shut down much of the U.S. More: Quicken Loans looks to raise as much as $3.8 billion from IPO More: Dan Gilbert guards Detroit headquarters in Quicken Loans IPO More: Quicken Loans may offer shares to the public, CNBC reports More: Quicken Loans IPO: Why it may need the cash and who gets rich And thus far, 64.5% of the IPOs done this year are trading above their IPO prices. On average, IPOs have returned 41% so far this year. The average first day pop has been 32.8% so far this year, well above the typical range of 13% to 15% range, according to Renaissance Capital's research. IPOs raising $29.1 billion, according to Renaissance Capital, a provider of institutional research on the IPO market. The IPO market has been exceptionally strong. Then, Quicken took the first public step associated with offering stock to investors on the afternoon of July 7 when preliminary paperwork for an initial public offering was filed with the SEC. Some documents - known as a draft registration statement - regarding Rocket Companies were submitted confidentially March 6 to the Securities and Exchange Commission, according to filings now listed at the SEC site. Rumors that billionaire Gilbert's privately held powerhouse would offer shares to the public began to swirl in early June. The Rocket IPO also was launched at a time of much uncertainty for the economy, including some concerns about the outlook ahead for home sales and interest rates.įarner said the mortgage company, which now has close to 9% market share, is aiming to have 25% market share in the course of the next 10 years. "The market is more favorable than not after pricing it at $18," Sowerby said. The stock was trading up by more than 20% in the early afternoon. "By cutting the IPO price and reducing deal size, the company made it a deal, which the market likes, indicated by a solid first day debut," said Josef Schuster, CEO for IPOX Schuster in Chicago.ĭavid Sowerby, managing director and portfolio manager for Cleveland-based Ancora Advisors, said the deal was "not a flop at all." As a result, the offering raised $1.8 billion instead of a targeted $3.3 billion.Įxperts speculated that some disagreement took place over whether Rocket's IPO stock should be priced at a lower range, say closer to a consumer company or bank than a tech wonder.īut others maintained that overall the Rocket IPO proved to work out well on Wall Street. The total deal was smaller with 100 million shares sold, down from an anticipated 150 million. Some critics dubbed the deal a flop since the IPO ended up being priced at $18 a share - or 18% lower than the anticipated maximum of $22 a share. More: Rocket Companies IPO priced at $18 a share, far below earlier estimates Was the Rocket IPO a flop as an IPO? "We think we're a technology company that happens to do home loans," Gilbert told CNBC. While Wall Street seemed to question the tech-based appeal of a Detroit-based company that heavily advertises its Rocket Mortgage brand, Gilbert reiterated the company's digital-driven story. They also maintain that the IPO positions the company for growth in the next five years to 10 years. The executives noted that the IPO puts stock in the hands of Rocket employees and will help strengthen the company's culture. Gilbert, Rocket's founder and chairman, was interviewed Thursday morning on CNBC along with Jay Farner, Rocket's CEO, before ringing the opening bell on the first day of trading for Rocket's stock. "It could have been worse, let's put it that way," Gilbert said.
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