Rocket, founded in 1985, is priced its IPO at $18, and the stock started trading at $18. The company raised $1.8 billion. The stock symbol is RKT.
The company originally was seeking to price shares between $20 and $22 a share, which would have raised around $3.3 billion.
In a Form S-1 filed July 28 with the Securities and Exchange Commission, Rocket said it was offering 150 million shares at $20 to $22 each. The underwriters also have an option on 22.5 million more shares at the IPO price.
Rocket's founder and chairman, Dan Gilbert, through a separate class of stock will hold 79% of the combined voting power of the common stock.
The mortgage market is one of the rare exceptions to the rule that the coronavirus pandemic has crushed the U.S. economy.
Mortgage rates are rock bottom and homeowners are refinancing. And the Journal points out that a tight housing supply has kept home prices high. Many younger people are moving to the suburbs and wealthier city residents are looking for second homes.
At the same time, with consumers crunched by the loss of their jobs during the pandemic, many consumer lenders are awaiting what could be a rush of loan defaults later this year.
For the 2020 first quarter, Rocket reported net income of $97.3 million, swinging from a net loss of $299.3 million for the year-earlier quarter. Revenue more than doubled to $1.37 billion from $631.8 million a year earlier.
In terms of the debut, Jim Cramer has just one question: Is Rocket more responsible than Wells Fargo?