Quicken Loans, a mortgage lending company, goes public on Thursday for the second time in their history. Its founder, Dan Gilbert, took the firm to trade on the New York Stock Exchange. The company saw a boost in mortgage applications as the central bank maintained almost zero percent interests.
Shares for the company traded at $19.30 at 12:45 pm ET on Thursday. The Detroit billionaire’s equity stake in Rocket Companies, parent company of Quicken Loans, is 95 percent, which is worth $36.4 billion. He has also sold his shares in the Rocket Companies amounting to $1.76 billion during the initial public offering.
He is now worth $41.1 billion, if other assets are considered. He owns NBA Team the Cleveland Cavaliers and he also has real estate in his home city. According to Forbes, those put him into the 17th spot of the list of richest Americans. He is also the second richest person to own an NBA Team, just behind Steve Ballmer, boss of the Los Angeles Clippers.
Detroit billionaire Dan Gilbert’s mortgage lending giant @QuickenLoans went public today as @RocketCompanies in a huge IPO that boosted his fortune by more than $33 billion, making him the 17th richest person in America. Read more @forbes https://t.co/0RqZopc3oJ
— Giacomo Tognini (@giacomotognini) August 6, 2020
Increase in mortgage application
As the US Federal Reserve has kept interest rates to a near zero since March, new mortgage lending increased. Rocket Companies reported a 127 percent increase in mortgages in the first half of this year, compared to last year’s same time period. The company saw $124 billion in new mortgages, according to Forbes. With that, this made this IPO one of the largest for this year.
This is not the first time Gilbert took his company public. In 1998, Rock Financial went public trading but was bought a year later by Intuit for $370 million. His company was renamed Quicken Loans, which was brought back by Gilbert and other investors for just $64 million, according to reports.
Growth of the company
Gilbert founded in 1985 the company Quicken Loans when he was only 22 years old. It was called Rock Financial back then, with most loan applications done in person, which later shifted to over-the-phone. According to Financial Times, it was the investment by Gilbert’s company to heavy technology that brought them to make the processing of loans even faster.
Quicken Loans then went on to become a huge brand in mortgage lending industry in the US. Its parent company says that it has a market share of 9.2 percent in mortgage lending in America.