LoanDepot was the fourth of four initial public offerings by mortgage companies to downsize in the past few months. However, that didn't stop investors from driving the price straight up.
The offering ultimately consisted of 3.85 million shares at a price of $ 14 per share. with the option of a subscriber to purchase an additional 577,500 shares. The initial public offering comprised 2.394 million shares, which were sold by creditDepot for proceeds of $ 25 million.
The remaining 1.456 million shares were sold by Parthenon Capital Partners
In its registration statement ,kreditDepot attempted to sell 10.82 million shares including the option to subscribe, while Parthenon sold 6.43 million shares at a price range of $ 19-21 per share.
Still, the stock rose quickly, high to $ 17.77 per share when it began trading Thursday morning. at 1:30 p.m. it went down to $ 17.05. But for the last half hour of trading, the price jumped to a high for the day of $ 23.49 before closing at $ 22.09.
The LoanDepot transaction came two weeks after Home Point Capital's initial public offering, which was significantly scaled back amid the turmoil at Game Stop.
Both Rocket Cos. As well as Guild Holdings, their listings had been downsized before starting their IPOs. Since UWM Holdings went public as part of a merger with an acquisition company for special purposes, it simply took over the existing shares and price from its partner Gores Holdings IV.
A request for a comment from creditDepot regarding the decision to reduce the offer was not returned.
In November 2015, however ,kreditDepot stopped its planned offer on the verge of pricing. Some speculated at the time that the deal would fall below its target of $ 16-18 per share.
This week's offering size reduction had an impact on creditDepot's plans to use the proceeds. The company will now acquire 2.394 million shares of LDI Holdings along with an equal number of Class B and C common shares, including from CEO Anthony Hsieh.