Rocket Cos. Inc. in Detroit today announced it has filed a registration statement on Form S-1 with the SEC to offer 150 million shares of its Class A common stock to the public. The initial public offering price is expected to be between $20 and $22 per share.
It would be the largest IPO to date for the year. No date has been established yet for the IPO. The company could net nearly $3.8 billion from the proposed offering.
Based on the filing, the company will have four classes of authorized common stock on the New York Stock Exchange, under the symbol, RKT. The Class A and Class C common stock will have one vote per share. The Class B and Class D common stock will have 10 votes per share.
Dan Gilbert, founder and chairman of Rocket Cos. (formerly Quicken Loans), under Rock Holdings Inc., will hold 99.95 percent of the issued and outstanding Class D common stock after the offering and will control 79 percent of the combined voting power of the common stock.
As a result, Rock Holdings will be able to control any action requiring the general approval of the stockholders, including the election of board members, the adoption of amendments to the company’s amended and restated certificate of incorporation, amended and restated bylaws, and the approval of any merger or sale of substantially all of the company’s assets.
Rocket Cos. also plans to adopt an employee stock purchase plan, or ESPP, which will permit employees to contribute up to a specified percentage of base salary and commissions to purchase shares at a discount. Roughly 10.5 million shares of Class A common stock will be available.
Last week, the company posted its preliminary financial results for the second quarter. The results showed a record-breaking quarter with $72.3 billion in originations (up 40 percent from the first quarter), $92 billion of net rate lock commitments with clients (up 64 percent from Q1), and preliminary total revenue, net between $4.9 billion and $5.1 billion (the midpoint of this range representing approximately +$3.7 billion from Q1).
At the same time, preliminary net income attributable to Rocket Cos. ranged from $3.4 billion to $3.6 billion in the second quarter.
As part of today’s announcement, Rocket Cos. plans to commence a roadshow for its proposed IPO. The company provides real estate, mortgage, and financial services to consumers through entities including Rocket Homes, Rocket Auto, and Rocket Mortgage, the nation’s largest mortgage lender.
The offering is subject to market conditions, and there can be no assurance as to whether, or when, the offering may be completed or as to the actual size or terms of the offering.
The offering will be made only by means of a prospectus which will be filed with the SEC and will be available on the SEC’s website at www.sec.gov. A copy of the preliminary prospectus relating to the offering may be obtained from any of the following sources:
- Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, telephone: 1-212-902-1171, facsimile: 212-902-9316 or by emailing firstname.lastname@example.org;
- Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014;
- Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, 6933 Louis Stephens Drive, Morrisville, North Carolina 27560, telephone: 1-800-221-1037 or by emailing email@example.com;
- J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone: 1-866-803-9204, or by emailing at firstname.lastname@example.org;
- RBC Capital Markets, Attention: Equity Syndicate, 200 Vesey Street, 8th Floor, New York, NY 10281-8098, by telephone at (877) 822-4089 or by email email@example.com.
A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.