12/30/2023 0 Comments Rocket mortgage stock symbol“Quicken has a robust business model and significant footprint in the mortgage business,” Kudla said. “The price we will get purely depends on the stock price once it begins to trade in the open market,” she said.ĭavid Kudla, CEO of Mainstay Capital Management, said the latest stock market rally and the Federal Reserve’s efforts to stimulate the economy via low interest rates reset the stage for a strong IPO season. 5.Īs a result, anything can happened between now and then.įor regular investors, most would be only be able to buy the Rocket stock in the aftermarket, once Rocket Companies shares begin trading on the New York Stock Exchange. 4, which would mean the stock would start trading on Aug. Liu said the pricing date is expected on Aug. It’s possible, for example, the IPO price could end up at $23 or $24 a share. “I’d say this range is likely to increase or they will price above the range,” said Kat Liu, an analyst at Chicago-based IPOX Schuster LLC. The IPO price could actually be higher, experts say. The latest SEC filing is what’s known as a guidance range based on the current level of supply and demand. if it surpasses Royalty Pharma, which raised $2.5 billion in July. Quicken's IPO could be the largest of the year in the U.S. This "employee stock purchase plan" will amount to 10.5 million shares, according to the SEC filing. Rocket Companies employees will be able to contribute up to a specified percentage of their base salary and commissions to buy shares at a discount. The new SEC filing says that up to 5% of Rocket Companies Class A shares will be reserved for company directors, officers, employees and their family members. “Neither were profitable at the time of the IPO, however, and they have continued to struggle with profitability,” Ritter said.Īlong with Quicken Loans, other businesses under the Rocket Companies umbrella would include title company Amrock, home search platform Rocket Homes, personal loans provider Rocket Loans, call center Rock Connections and a used car business called Rocket Auto that is relatively new. Some tech stocks, for example, that have been disappointments for investors in the year after the IPO include Lyft and Blue Apron, according to Ritter. Not all IPOs are sure bets for investors. “As with other mortgage lenders, when interest rates drop, many homeowners refinance, and thus the number of new mortgages (including refinancing) tends to fluctuate a lot from year to year,” Ritter said. While Rocket is growing, the revenue is also variable from year to year so that can create some uncertainty for investors. Ritter expects the IPO to trade in early August. “Unlike most IPOs, the company is profitable, and has earned high return on equity,” said Jay Ritter, an IPO expert and Cordell Eminent Scholar at the University of Florida’s Warrington College of Business. The Rocket Companies IPO would be one of the biggest so far of 2020, and it is expected to receive a favorable response on Wall Street this summer. The IPO's underwriters have the option to buy an additional 22.5 million shares, bringing the total potential offering to 172.5 million shares. The stock will trade under the ticker symbol RKT. The company anticipates its likely net proceeds from the IPO will be about $3.1 billion, based on a $21 per-share price, which would be the midpoint of the offering price range. More: Quicken Loans IPO: Why it may need the cash and who gets rich More: Quicken Loans files IPO paperwork, will be called Rocket Companies More: Dan Gilbert guards Detroit headquarters in Quicken Loans IPO The filing expects Rocket Companies to have a valuation of about $40 billion. The offering would amount to selling about 8% of the company and leave founder and Chairman Dan Gilbert and other board members with about 80% control, according to the SEC filing. The company has yet to announce a date for the IPO. The Detroit-based mortgage giant, which is rebranding itself as Rocket Companies, disclosed Tuesday that it is offering 150 million shares to the public at $20 to $22 each, according to a Securities and Exchange Commission filing. Quicken Loans is looking to raise as much as $3.8 billion from its initial public offering.
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