In a move that confirms market speculation, the largest mortgage lender in the U.S. is preparing to hit the stock exchange. Quicken Loans has filed to launch an initial public offering (IPO). In addition to making its debut on the public markets, the company will also undergo a name change to Rocket Companies. It should trade on the New York Stock Exchange under the ticker symbol RKT.
In its initial IPO prospectus, Quicken Loans did not specify how much funding it aims to raise in the offering. It also did not specify any underwriters for the issue or provide guidance as to timing.
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Quicken Loans did publish financial results from its latest quarter and annual figures going back several years.
These show that revenue jumped in 2019 by nearly 22% year over year to over $5.1 billion. The company's annual bottom line has been profitable, but has fluctuated, ranging from nearly $894 million to $1.81 billion from 2015 to 2019. These are considerable feats given the scope and power of the largest rival mortgage lenders on the market, particularly big banks like Wells Fargo (WFC -0.57%) and JPMorgan Chase (JPM -0.20%).
Quicken Loans has thrived thanks to durably strong demand for U.S. housing, which seems to be holding up relatively well during the pandemic.
Wells Fargo and JPMorgan Chase are also active underwriters of U.S. IPOs, so it will be interesting to see if either participates in Quicken Loans' issue. On Thursday, Wells Fargo sank by 2.1%, while JPMorgan Chase shares fell 2.2%.
