Wave of mortgage lenders testing IPO waters

TThe mortgage space is heating up and ready for public offerings, with three residential mortgage lenders appraising in October: Guild assets (GHLD), AmeriHome (AHM), and Caliber home loans (HOMS).

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Highly cyclical space, the rise in IPO activity comes against a backdrop of record interest rates leading to increased fundings, with increased selling profit margins, despite some headwinds from COVID-19 on the side. services. Due to increased mortgage activity and technology platforms, all three companies performed exceptionally well in 1H20, more than doubling year-over-year revenues and demonstrating improving margins.

The start of the exchanges is scheduled for Thursday, Guild assets (GHLD) plans to raise $ 153 million at a market value of $ 1.1 billion. The relationship-based retail mortgage lender has 1,000 loan officers in 31 states, primarily on the west coast and south. Guild has grown its market share and geographic footprint both organically and through acquisitions, and has strategically focused on providing first-time home buyers with purchase loans.

On the schedule for next week, AmeriHome (AHM) plans to raise $ 250 million for a market value of $ 1.3 billion. AmeriHome’s flexible and scalable platform has enabled the company to generate strong growth and performance, with 21 consecutive quarters of profitability and production volume growth of 187% from 2015 to LTM 2Q20.

Caliber home loans (HOMS) plans to raise $ 345 million for a market value of $ 1.8 billion. With a diverse and customer-centric platform, Caliber primarily focuses on the buying market and is the second largest independent mortgage originator in terms of purchase volume since 2016.

Calendar of IPOs in the United States
Transaction size
Market capitalization
Price scale
Deposited shares
Guild assets (GHLD)
San diego, california
$ 153 million
$ 1,102 million
$ 17 – $ 19
Wells fargo
Provides personalized mortgage services and loan arrangements.
AmeriHome (AHM)
Thousand Oaks, California
$ 250 million
$ 1,287 million
$ 16 – $ 18
14 705 882
Swiss credit
Residential mortgage producer and manager.
Caliber Home Loans (HOMS)
Coppell, Texas
$ 345 million
$ 1.813 million
$ 14 – $ 16
Swiss credit
Residential mortgage producer and manager.

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Latest Mortgage IPO Candidates Track Leading Mortgage Lender’s Strong Performance Online Rocket companies (RKT). One of the biggest IPOs of the year, Rocket is up 11% from its August offering, benefiting from both the favorable environment and the ongoing digital shift.

Another headline-grabbing mortgage lender, United Wholesale Mortgage recently announced a merger deal with Gores Holdings IV (GHIV). The No. 1 wholesale mortgage lender in the United States, UWM, is reportedly valued at $ 16 billion, making it the largest PSPC transaction to date.

The article Wave of mortgage lenders testing IPO waters originally appeared on the renaissancecapital.com website of IPO investment manager Renaissance Capital.

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 ETF Renaissance IPO (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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