Rocket Cos., the parent company of Quicken Loans, has priced its initial public offering (IPO) at the low end of expectations.
The top mortgage lender in the U.S. is planning to offer 100 million shares at $18 apiece during its IPO. The company had previously planned to sell 150 million shares at between $20 and $22 each. The stock is expected to start trading on the New York Stock Exchange August 6.
At the new price and number of shares sold, the IPO would raise about $1.8 billion for Rocket Cos. The debut had previously been expected to raise as much as $3.3 billion, which would have been the year’s second-largest IPO behind the $4 billion that hedge-fund billionaire William Ackman raised through a special-purpose acquisition company (SPAC deal) last month, according to data from Dealogic.
The U.S. mortgage market has held up surprisingly well as the global pandemic battered the broader economy. The Mortgage Bankers Association expects mortgage originations to hit their highest level this year since 2005. Record-low interest rates are prompting Americans to refinance their mortgages, while a tight housing supply has kept home prices high.
The company will trade under the stock ticker symbol “RKT.”