Real Estate

LoanDepot Readies Downsized IPO – Inman

The company had planned to price its shares between $19 and $21 but settled on $14 per share when it released its offering details Thursday.

LoanDepot, one of the nation’s largest direct-to-consumer non-bank originators, officially released the details of its initial public offering Thursday. In an apparent downsize, the company is pricing its shares at $14 per share, below the $19 to $21 range it was expecting.

Anthony Hsieh | Photo credit: LoanDepot

“As we continue rounding the corner into our second decade, the size and scale of our platform has changed, but our core values and principles have not,” LoanDepot CEO Anthony Hsieh, said in a letter that accompanied LoanDepot’s filing with the U.S. Securities and Exchange Commission. “We’re going to keep doing what we set out to do eleven years ago.”

“We will continue thinking and doing things differently on behalf of our customers, serving, delivering and innovating with intent,” Hsieh added. “We’ll continue to challenge what’s possible, all while remaining true to our customers, our team and our purpose.”

The company’s initial public offering is 3,850,000 shares of its Class A common stock at $14 per share. The shares will begin trading today under the ticker symbol “LDI” on the New York Stock Exchange, with the offering expected to close on February 16.

In the filing, the company said it plans to use the net proceeds to buy back equity interest in the company from certain unitholders.

The filing also revealed that the company generated $63.4 billion in mortgage originations in the nine months ending September 30, 2020, which was a year-over-year increase of 116 percent. Over the same period, the company posted $3 billion in revenue — an increase of 227 percent year over year — and $1.47 billion in net income.

The downgrading of the share price comes five years after LoanDepot first considered a public offering in 2015, which was pulled at the last minute after the company filed an S-1 with the U.S. Securities and Exchange Commission.

The IPO was initially pulled right before the shares were set to be priced, on the heels of slumping stock prices for LendingCorp, a top rival of LoanDepot. Approximately a year after the S-1 was filed, LoanDepot pulled the paperwork.

Rocket Companies — the public-facing name of the brand behind Quicken Loans, Rocket Mortgage and Rocket Homes, as well as a rival of LoanDepot’s — went public last year. Its IPO was also downgraded slightly to $18 per share from the expected $20 to $22 per share.

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