Quicken Loans Plans To Offer Shares To The Public, CNBC Reports
Detroit-based Quicken Loans, founded and owned by billionaire Dan Gilbert, is expected to launch an initial public offering, according to a report released Thursday by CNBC.
Citing people familiar with the matter, CNBC said the mortgage lender giant had filed its IPO prospectus confidentially and could offer shares to the public as early as July.
The value of the deal would probably be “tens of billions of dollars”, according to the report.
“We do not comment on speculations or rumors,” said Aaron Walker, director of communications for Gilbert’s Rock Ventures, which serves and connects Gilbert’s portfolio of over 100 companies.
Quicken Loans would work with Morgan Stanley, Goldman Sachs, Credit Suisse and JPMorgan to manage the deal, said sources at CNBC, who asked not to be named in the CNBC report.
The coronavirus pandemic and the economic fallout from the spring dampened the IPO market, but IPO activity increased in June, where many offerings are focused on digital. Online used car seller Vroom, for example, skyrocketed on its first day of trading on Tuesday.
According to the company, Rocket Mortgage offers a fully online mortgage experience, which “gives consumers the ability to import and verify financial information, personalize their mortgage, get approval and lock in their rate not to mention. to a human being ”.
David Sowerby, chief executive and portfolio manager of Cleveland-based Ancora Advisors, said Quicken’s IPO could be viewed positively by the market this summer for a variety of reasons.
Interest rates are expected to stay low for some time, which could fuel home buying and mortgage refinancing; housing continues to have a positive outlook for the future, and Quicken’s business model may be attractive.
“They have a very scalable, technology-driven model,” Sowerby said.
Gilbert, who also owns the Cleveland Cavaliers, suffered a stroke in May 2019 but had regained his strength and motor skills. He gave a speech in February on the ballroom stage at MGM Grand Detroit, where he received a Lifetime Achievement Award at the Crain’s Newsmakers of the Year luncheon.
Quicken Loans was founded by Gilbert as Rock Financial in 1985 and has grown to become one of Detroit’s largest employers.
Quicken says online that it has 17,000 employees based in Detroit, Cleveland, Phoenix, San Diego and Charlotte, North Carolina. The majority of the employees are in Detroit. The company moved its headquarters to Detroit from Livonia in 2010.
Last year would have been Quicken’s best year in overall home loan volume, thanks to refinancing activity and low mortgage rates.
As of late 2017, Quicken Loans has been ranked by industry publications as the nation’s # 1 direct-to-consumer mortgage lender, ahead of Wells Fargo and Bank of America.