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Rocket launches IPO
Posted on Wednesday, 08 July 2020 09:50
US personal finance and consumer service brands holding company Rocket Companies is the latest initial public offering (IPO) hopeful.
Goldman Sachs, Morgan Stanley, Credit Suisse, JPMorgan, RBC Capital Markets and Siebert Williams Shank are underwriters for the listing with a USD 100.00 million placeholder.
Rocket is a Michigan-based mortgage lender with a flagship business that has provided more than USD 1,000 billion in home loans since inception in 1985.
The company has increased its market share from 1.3 per cent in 2009 to 9.2 per cent in the first quarter of 2020, representing a compound annual growth rate of 19.0 per cent.
It has also expanded into complementary, fragmented industries, such as real estate services, personal lending, and auto sales.
Rocket has invested over USD 5.00 billion in marketing, including more than USD 900.00 million in the year ended 31st December 2019, since inception to achieve significant digital-first brand recognition.
Rocket said it has demonstrated “a track record of creating value through profitable growth with a capital-light business model”.
In FY 2019, the company had total net revenue of USD 5.12 billion and a net profit attributable to shareholders of USD 893.75 million, representing a 22.0 per cent and 46.0 per cent year-on-year growth.
Rocket recorded net revenue of USD 1.37 billion and net profit of USD 97.72 million in Q1 2020, compared to USD 631.77 million and a loss of USD 299.02 million in Q1 2019.
Zephyr, the M&A database published by Bureau van Dijk, shows 920 IPOs have been announced globally so far this year.
US-based companies account for 91 of these listings, of which the largest is Pershing Square’s first-time share sale worth USD 3.00 billion.
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