Nation's second-largest mortgage lender has raised nearly $54 million so far
Nonbank home lender loanDepot has priced its initial public offering at $14 a piece, which is significantly lower than its expected range as the IPO failed to attract enough buyers.
loanDepot sold 3.85 million shares – 11.2 million fewer than anticipated – raising $53.9 million. The company initially planned on offering 15 million shares between $19 to $21 each. According to a Press release, loanDepot will use the primary offering’s net proceeds to buy equity interest in LD Holdings Group from certain unitholders.
loanDepot’s debut comes amid a number of other IPOs in the mortgage space, including Home Point, United Wholesale Mortgage, and SoFi among others.
Read more: Lenders are going IPO crazy, but what do investors think of them?
Trading began Thursday on the New York Stock Exchange, under the ticker symbol "LDI" and is expected to close on February 16. There are 14 banks underwriting the transaction, led by Goldman Sachs, BofA Securities, Credit Suisse, and Morgan Stanley.
