TAIPEI, Taiwan--(BUSINESS WIRE)--Finance executives at respected Taiwanese wealth management company Crest View International have commented on billionaire Dan Gilbert-owned Rocket Companies Inc. filing for an initial public offering, with the parent company of Quicken Loans disclosing its annual profit for the last three years.
"The Detroit-based firm, which owns Rocket Mortgage and Quicken Loans, listed the size of the offering at $100 million, a placeholder amount that is expected to change," commented Michael Kennedy, Head of Corporate Trading at Crest View International.
Rocket Companies describes itself as the biggest home mortgage lender in the U.S., with Gilbert' net worth an estimated $7.1 billion, according to data collected by analysts at Crest View International.
Following a major slump brought on by the coronavirus pandemic, the U.S. IPO market has bounced back. In the second quarter, a combined total of $134 billion was generated through all equity issuance, resulting in the busiest quarter on record.
Mortgage lenders, including Quicken Loans, were struck by the pandemic and some, by the Federal Reserve's attempts to stabilise the market by buying mortgage securities. That action ended up costing lenders because it tipped hedges regularly used by lenders into the red. The Fed died down, but the buying spree continued.
Homeowners also remain under pressure. Approximately 11% of mortgage households failed to make their last payment, and 16% of the survey respondents said they feared they wouldn't be able to cover the next one, according to the U.S. Census Bureau's Household Pulse survey over the five weeks through June 2.
"Rocket Companies reported it had earned $97.7 million on revenue of $1.8 billion in the three months ended March 31, compared to a loss of $299 million on revenue of $727 million over the same period the year before,” commented Robert Woods, Senior Vice President of Crest View International.
According to the filing, Gilbert, the chairman, controls an entity which will hold 79% of the voting power of the firms common stock. Gilbert also owns the Cleveland Cavaliers, the National Basketball Association team whose arena carries the name of the company. His holdings in Rocket Companies were not published in the prospectus.
Goldman Sachs Group Inc., Morgan Stanley, Credit Suisse Group AG, JPMorgan Chase & Co. and Royal Bank of Canada are managing the IPO. It intends to list its shares on the New York Stock Exchange under the ticket RKT.
About Crest View International
Crest View International Limited is a private wealth management company headquartered in Taipei, Taiwan. Crest View International manages over $8.7 billion (USD) on behalf of its clients from around the world.