Quicken Loans parent shares jump after New York debut By Reuters

Quicken Loans parent shares jump after New York debut By

© Reuters. Screen displays the logos of Rocket Companies (RKT) in Times Square during the company’s IPO in New York

(Reuters) – Shares of Rocket Companies Inc (N:) rose 10% following their New York debut on Thursday, after the parent company of U.S. mortgage lender Quicken Loans sold shares to investors in its $1.8 billion initial public offering (IPO).

Rocket shares were trading up at $19.75 shortly after they opened flat at $18 a share, the same as its IPO price.

The company sold 100 million shares in the IPO to raise $1.8 billion, which valued the company at around $36 billion. The company had aimed to sell 150 million shares at a target price range of $20-$22 per share.

At its IPO price of $18, it is now the third-largest U.S. listing of 2020, excluding blank-check companies. Only Royalty Pharma (O:) and Warner Music Group (O:) have had bigger stock market debuts this year, raising $2.18 billion and $1.93 billion, respectively.

Within its original price range of $20-$22, which would have seen the company raise over $3 billion, Rocket would have been the largest IPO of a U.S. company of the year so far.

The Detroit-based company, founded by billionaire Dan Gilbert in 1985, said earlier this month it expects a profit of more than $3 billion in the second quarter, compared with a loss a year earlier.

A surge in borrowings by consumers due to historically low interest rates in the United States has boosted Rocket’s income this year.

Goldman Sachs (NYSE:), Morgan Stanley (NYSE:), Credit Suisse (SIX:), JPMorgan (NYSE:) and RBC Capital Markets are the lead underwriters for the IPO.

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