Quicken Loans and Rocket Mortgage owner Rocket Companies is going public, with the mortgage provider owned by billionaire Dan Gilbert filing Wednesday for an initial public offering of its stock.
The Detroit-based company announced its intentions to go public in a regulatory filing, in which it also revealed that it has earned three consecutive years of profits.
Gilbert will have 79% of the voting power of the company’s common stock, according to the filing. Gilbert is also the owner of the Cleveland Cavaliers, the National Basketball Association team whose arena bears the company’s name.
Rocket Companies' IPO intentions come as the U.S. IPO market shows signs of recovery following the coronavirus pandemic, which prompted the biggest percentage drop in stocks in history, though also spurred government officials to backstop the economy, spurring one of the quickest rebounds on record.
It also comes as homeowners struggle to maintain their mortgage payments, even with widespread mortgage relief programs in place. Some 11% of households with a mortgage failed to make their last payment and 16% said they fear they can’t cover the next one, according to the U.S. Census Bureau’s Household Pulse survey in the five weeks through June 2.
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