LoanDepot is filing paperwork to go public in 2021
It’s finally here: California lenders Credit deposit has an updated S-1 submitted with the Stock exchange supervisory authority and wants to go public in 2021.
The company, which was founded by billionaire Anthony Hsieh, said Monday that its subsidiary LoanDepot Inc. had filed documents in confidence, but it had not determined how much shares would be sold or at what price.
In September, Bloomberg reported that retail, wholesale and correspondent LoanDepot is aiming for an IPO that would be valued at between $ 12 billion and $ 15 billion.
Credit deposit, supported by a private equity firm Parthenon capital partner, first announced that it will go public in September 2015 but canceled the IPO just hours before the price setting, citing unfavorable “market conditions”. At the time, LoanDepot was aiming for a market value of $ 2.4 billion to $ 2.6 billion.
In March 2017 the company busy plans for an IPO but not pulled through.
The updated S-1 has shown impressive profitability over the past few months. LoanDepot posted net income of $ 1.47 billion for the first nine months of 2020, significantly more than the same period in 2019 of $ 18 million.
In November, LoanDepot was the eighth largest lender in the country and the 31st largest service provider, according to Inside Mortgage Finance. It now has over 10,000 employees and became the second largest personal lender in the country after Rocket Companies in 2020.
“We have created a company that is geared towards serving customers throughout the entire loan transaction, from the start of the purchase or refinancing decision to closing the loan and servicing,” said Hsieh in the prospectus. “We now have a market share of around 3% of annual mortgage lending volume, which is part of the total addressable market of $ 11 billion. Thanks to our brand investments over time, we are also one of the best-known brands in the industry today. All of this gives us an enormous runway. And to some, it may seem like we’re in a completely different place than eleven years ago. But from my point of view, a lot feels the same. “
LoanDepot made $ 79.4 billion in loans in the twelve months ended September 30, as disclosed in its prospectus. The company had total revenues of $ 1.3 billion in 2019 and $ 3.3 billion for the first nine months of 2020.
LoanDepot’s upcoming public debut comes during an amazing period of initial public offerings for the mortgage industry. Margins are at cyclical highs, typically over 250 basis points, and virtually every independent mortgage lender has made record profits over the past year.
Missile companies and Guild stocks made their debut in 2020 and 2021 could see United wholesale mortgage, Caliber home loan, Home point, Finances of america, AmeriHome, Better.com, Guaranteed Rate / Stearns, and SoFi are all going public.
LoanDepot is traded under the ticker symbol “LDI”, announced the company on Monday.
The company recently announced a joint venture partnership with a Canadian developer Brookfield. It also has a JV partnership with AV houses, MTH mortgage, MSC Mortgage Mort, Tri pointe connection, Polygon mortgage and LGI houses.
Goldman Sachs, BofA securities, Credit Suisse and Morgan Stanley act as lead book-running manager for the proposed offer. Barclays, City group, Jefferies and UBS investment bank will be book run manager, and JMP securities, Nomura, Piper Sandler, Raymond James & Associates, Inc. and William Blair will act as co-manager for the proposed offer.