Rocket Companies Targets $3.8B IPO As Roadshow Kicks Off

Detroit-based mortgage giant Rocket Companies Inc. RKT filed new documents Tuesday, updating investors on its IPO plans as it sets out on its sales pitch roadshow.

What Happened? On Tuesday, Rocket said it plans to raise as much as $3.8 billion by selling 150 million IPO shares at a target offering price range of between $20 and $22. The $3.8-billion target would represent an overall valuation of around $43.7 billion for the company.

Rocket Companies is seeking to list on the New York Stock Exchange under the ticker "RKT."

Why It’s Important: The IPO would be by far the largest of 2020, surpassing Royalty Pharma plc RPRX at just $2.2 billion.

Rocket Companies was founded in 1985 by billionaire Dan Gilbert, and its leading brands include Rocket Mortgage, Rocket Homes, Rocket Loans, Rocket Auto, Rock Central, Amrock, Core Digital Media, Rock Connections, Lendesk and Edison Financial.

Rocket has said it expects a profit of more than $3 billion in the second quarter of 2020. In the first quarter of 2020, Rocket reported $1.36 billion in revenue. The company guided for full-year revenue of between $4.93 billion and $5.13 billion, five times more than its 2019 total.

The company said historically low interest rates have generated a boom in mortgage refinance originations this year.

As of June 30, Rocket said an estimated 98,000 customers and 5.1% of serviced loans were on forbearance plans.

Rocket’s IPO underwriters include Goldman Sachs Group Inc GS, Morgan Stanley MS and Credit Suisse.

Benzinga’s Take: The timing for the Rocket IPO could not be better given March interest rate cuts will likely generate massive profits for Quicken in the second quarter. In coming quarters, IPO investors will need to determine what the new normal will be for Rocket’s lending business given the ongoing economic difficulties and a longer-term environment of near-zero interest rates.

Related Links:

One Year Since Uber's IPO: A Look At The Stock's Bumpy Ride

VICI Properties Reports Purchase Of JACK Cincinnati Casino For $745M

Quicken Loans Chairman Dan Gilbert. Photo by Emily Elconin. 

Posted In: Dan GilbertMortgagesRocket CompaniesNewsIPOsReal Estate

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.