United Wholesale Mortgage, Largest SPAC Listing, Falls in Debut

United Wholesale Mortgage shares fell in their debut. With a market value  near $16 billion, the company was the largest to go public via a SPAC merger.
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United Wholesale Mortgage  (UWMC) - Get Report in its trading debut surged and then lost ground.

The company, with a market valuation of nearly $16 billion, is now the largest listing via merger with a special-purpose acquisition company.  

UWM, the parent of United Wholesale Mortgage, went public by merging with blank-check company Gores Holdings IV.

"While UWM is already firmly established as the number one wholesale mortgage lender, with a huge leg up on technology and strong operational efficiencies, we never relax," UWM Chief Executive Mat Ishbia said in a statement.

The Pontiac, Mich., company's shares at last check were down 1.7% to $11.34.

SPAC IPO's accounted for nearly half of U.S. IPO activity in 2020, according to SPAC Analytics, and accounted for nearly half the growth in the U.S. IPO market last year compared to 2019, research firm SPAC Analytics said

UMW saw record 2020 third-quarter earnings: $1.45 billion in net income. The company also reported that for the first nine months of 2020, production volume exceeded the figure for all of 2019.

The company recently launched a number of products including a mobile app that provides brokers access to "do almost every aspect of their jobs" from within the app.

"UWM’s unparalleled market position, customized technology and deep bench of talent have brought the company to the forefront of the mortgage industry," said Alec Gores, CEO of Gores Group. The Los Angeles investment firm sponsored the SPAC.