Online Mortgage Deposit Prices Lowered IPO Well Below $ 14 Range

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IoanDepot, a non-bank retail mortgage originator, raised $ 54 million by offering 3.9 million shares (38% insider) at $ 14, below the $ 19 to $ 21 range. The offering contained 11.2 million fewer shares than expected. At the price level, LoanDepot raised 82% less proceeds than expected, and the IPO float only represents 1.2% of base shares outstanding.

LoanDepot is the second-largest retail-focused non-bank mortgage originator and the fifth-largest overall retail originator, according to Inside Mortgage Finance. The company’s origination market share increased from 1.1% in 2014 to 2.6% in 9mo20. LoanDepot issued $ 79.4 billion in loans for the twelve months ended September 30, 2020, and increased origination volume by 116% year-on-year in 9mo20.

LoanDepot expects to be listed on the New York Stock Exchange under the symbol LDI. Goldman Sachs, BofA Securities, Credit Suisse, Morgan Stanley, Barclays, Citi, Jefferies and UBS Investment Bank acted as lead managers of the transaction.

The article Online mortgage lender prices LoanDepot reduced the IPO to well below the $ 14 range that initially appeared on IPO investment manager Renaissance Capital’s website renaissancecapital.com.

Disclosure of investments: The information and opinions expressed in this document have been prepared by Renaissance Capital research analysts and do not constitute an offer to buy or sell any securities. Renaissance Capital’s Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS) or separately managed institutional accounts may have investments in securities of the companies mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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