- Compass, a residential brokerage, filed draft IPO registration statement with US Securities and Exchange Commission
- LoanDepot filed for initial public offering (IPO) within last week as well
Both Compass and LoanDepot announced this last week that the respective companies had filed statements with the US Securities and Exchange Commission (SEC) to “go public” via Initial Public Offerings or IPOs. Both of these companies had considered such moves in the past but now, in this record-low interest rate environment, the timing of pursuing public financing appears to be right and ripe for both of them.
Are you ready to join EXP REALTY? Choose Tim and Julie Harris as your sponsor! Text Tim directly 512-758-0206.
Record-low interest rates have provided an enormous boost to both the mortgage lending business and to residential brokerage firms. According to the Mortgage Bankers Association’s most recent forecast, the mortgage industry is expected to originate more than +$3.1T in mortgage loans in 2020 representing an increase of 45% from 2019 and the highest origination volume in years.
LoanDepot intends to list on the New York Stock Exchange under the symbol LDI. The company listed revenue of $1.3B loans in 2019 and $3.3B in revenue during the first nine months of 2020 and net income of $1.47B compared to $18M in 2019.
Last valued at $6.4B in 2019, Compass joined residential brokerage rivals such as Realogy, Keller Williams, eXp Realty, Zillow and others to enjoy a record-setting year in home sales and exploding revenues in 2020. Again, as in the mortgage lending business, record-low interest rates led to a blast in residential home sales during 2020.
Get your free 2021 Fill In The Blank Business Plan Now. Simply TEXT 2021 to 855-685-1045.
Neither Compass nor LoanDepot knows how many shares their companies will be available via their respective proposed public offerings nor has the price range for those shares in either company been determined. All that both companies do know, however, is that, according to Chris Whalen, banking analyst and chairman of Whalen Global Advisors, “This (low interest rate) opportunity’s not going to go away…” and that the stock market’s on a roll.
Thanks to InmanNews, the Real Deal and MarketWatch.
URGENT: 2021 Results Released. New FREE On-Line Web Event Reveals 17 Surprising Secrets Of The Top 100 Millionaire Agents. Get Your FREE Spot For The On-Line Webinar Now. When You Attend This Event You Will Have A Sense Of Relief Knowing You Can FINALLY Laugh At Your Money Worries – If You Follow This Simple Plan. Learn How To Generate 100’s of Motivated Leads Without Coming Off As A Pushy Salesperson and Losing Your Soul. Learn Now How To Become One of the 1000s of Agents Making HUGE Money NOW Who Never Thought They Could.
P.S. Limited Space Available. 235 Spots Left.