LoanDepot is revisiting a proposal to hold an initial public offering, Bloomberg reported, half a decade after pulling a first-time share sale worth as much as USD 540.00 million.
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At the time, the Californian consumer lender had filed an S-1 to sell 30.00 million new and existing shares at USD 16.00 to USD 18.00 apiece.
It had provided underwriters, comprising Morgan Stanley, Goldman Sachs, Wells Fargo Securities, Barclays, UBS and Citigroup as joint bookrunning managers, with an overallotment option for a further 4.50 million scrips.
Bloomberg noted LoanDepot is now seeking a post-listing valuation of USD 12.00 billion to USD 15.00 billion, as opposed to USD 2.40 billion to USD 2.60 billion in 2015.
The group has already met with possible underwriters to see if it could launch a first-time share sale as early as the fourth quarter, though it has not made a firm decision on the matter, sources told the news provider.
Chief executive Anthony Hsieh told Bloomberg in an interview: “We continue to evaluate capital options and are excited about our industry position.”
LoanDepot has grown to become the second-largest non-banking institution and the fifth-biggest retail mortgage lender in the US, funding more than USD 248.00 billion since inception in 2010, according to its website.
The company, which was founded by Hsieh, has a nationwide team of 8,000-plus members who assist more than 25,000 customers each month.
Zephyr, the M&A database published by Bureau van Dijk, shows just one IPO by a mortgage and non-mortgage loan broker has been announced so far this calendar year.
Rocket – the owner of Quicken Loans – listed in August after selling 100.00 million shares at USD 18.00 apiece for a total USD 1.80 billion, not including the overallotment option.
When speaking about the rival, Hsieh told Bloomberg: “We are the Lyft to their Uber. The momentum for non-bank lending is here to stay. We’re here to fuel the American dream.”
© Zephus Ltd