Rocket Companies eyes $3.8 billion in IPO, for 8% of the company - Crain's Cleveland Business

komoros.blogspot.com

Rocket Companies Inc., the Detroit-based mortgage company founded by billionaire Dan Gilbert, plans to raise up to almost $3.8 billion in its pending initial public offering.

While the company has not announced a date for the IPO, an updated regulatory filing Tuesday morning outlines a proposed offering price of $22 a share, selling 172.5 million shares for a total proposed IPO value of $3.795 billion.

A statement from the company noted that the proposed price per share remains in flux and will likely land between $20 and $22. The final price would not typically be set until the evening before the IPO. The stock is expected to price on Aug. 5, Bloomberg reported.

Additionally, the company said Tuesday that it is officially kicking off the "roadshow," or sales pitch, portion of the IPO process. During this time, Rocket executives will pitch the stock to would-be investors ahead of the offering.

The proposed offering amounts to 8% of the new company, which will remain tightly controlled by Gilbert, and values the mortgage giant at around $40 billion.

The proposed offering would be by far the largest operating company IPO so far this year.

New York Royalty Pharma plc, which funds clinical trials for future drug royalties, had the largest biotech IPO in history on June 15, raising $2.2 billion. Warner Music Group Corp. raised $1.9 billion and New Jersey business analytics firm Dun & Bradstreet Holdings Inc. raised $1.72 billion, both in June.

Experts have told Crain's that given the company's maturity and profitability, as well as a high degree of confidence in Gilbert, investors are likely to flock toward the mortgage giant.

Rocket Companies consists of personal finance and consumer service brands including Rocket Mortgage, Rocket Homes, Rocket Loans, Rocket Auto, Rock Central, Amrock, Core Digital Media, Rock Connections, Lendesk and Edison Financial.

Editor's note: This story has been updated to correct a description of the proposed valuation of the entire company.

Let's block ads! (Why?)

"company" - Google News
July 28, 2020 at 09:12PM
https://ift.tt/3f96mYD

Rocket Companies eyes $3.8 billion in IPO, for 8% of the company - Crain's Cleveland Business
"company" - Google News
https://ift.tt/33ZInFA
https://ift.tt/3fk35XJ

Bagikan Berita Ini