Rocket Companies also owns Quicken Loans. The company is offering 150 million shares for $20 to $22 each, according to the Tuesday (July 28) filing with the Securities and Exchange Commission (SEC), Bloomberg wrote.
The offering will be led by Goldman Sachs Group Inc., Morgan Stanley, Credit Suisse Group AG, JPMorgan Chase & Co. and Royal Bank of Canada, and will appear on the New York Stock Exchange (NYSE) under the symbol RKT.
The IPO was announced in June, PYMNTS reported, and Gilbert will remain in control after the filing. The company filed the initial IPO prospectus covertly, in what was speculated to be one of the bigger IPOs of the year.
Gilbert, who also owns the National Basketball Association (NBA) team the Cleveland Cavaliers, controls 79 percent of the voting power for the company’s common stock. His net worth is sitting at $7.8 billion, according to the Bloomberg Billionaires Index.
According to David Kudla, CEO of Mainstay Capital Management, Gilbert’s stake in the company meant he’ll likely retain full control over everything that happens with the company. He said the deal was being constructed so Gilbert could retain a “super majority” position, which usually means anywhere from 67 to 90 percent ownership.
According to Rocket Companies, which describes itself as the biggest retail mortgage lender in the U.S., the company earned $97.7 million on the revenue of $1.8 billion for the three months ending March 31. That’s compared to a loss of $299 million on a revenue of $727 million year over year, according to Bloomberg.
Quicken Loans has been trying to cut down on time for authenticating borrower information through data mapping services, PYMNTS reported. The process can aid in going directly to the source of customer data, help eliminate fraud and show bigger patterns for real estate paperwork.