loanDepot has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). The company expects to price its 30 million shares in the range of $16 to $18, with an overallotment option for an additional $4.5 million shares. At the maximum price, the entire offering is valued up to $621 million. The company intends to list its shares on the New York Stock Exchange under the symbol LDI.
The underwriters and joint book-running managers given in the last filing were Morgan Stanley, Goldman Sachs, Wells Fargo, Barclays, Citigroup and UBS Investment Bank. However, loanDepot added in JMP Securities and Raymond James as co-managers, along with the previously mentioned BMO Capital Markets.
This is a leading technology-enabled U.S. consumer lending platform. The company launched its business in 2010 to provide credit solutions to consumers who were not satisfied with the service offered by banks and other traditional market participants. loanDepot is the nation’s second largest direct-to-consumer non-bank originator by annual funded loan amount and has facilitated over $50 billion in total funding since inception. It currently offers a broad suite of consumer credit products to customers, ranging from home loans to unsecured personal loans. Its hybrid originate-to-sell and marketplace business model allows loanDepot to generate significant loan volume with less capital than traditional market participants.
For the 12 months ended June 30, 2015, the company originated $22.1 billion in loans, representing 125% year-over-year growth. Moreover, it has generated this substantial growth while maintaining profitability since 2012.
In the filing the company described its finances as follows:
Our business has scaled rapidly and has been funded primarily by internally generated profits from operations. For the twelve months ended June 30, 2015, we originated $22.1 billion of loans, representing year-over-year growth of 125% relative to the twelve months ended June 30, 2014. Our growth has been supported by our balance-sheet light model, which utilizes diverse funding sources, our ability to provide what we believe is a superior customer experience and our strategic acquisitions. For the year ended December 31, 2014, we originated $13.2 billion of loans and recorded total net revenues of $544.5 million, Adjusted EBITDA of $50.2 million, Adjusted Net Income of $17.6 million (giving effect to net income as if we were taxed as a C-Corp) and net income of $21.7 million. For the six months ended June 30, 2015, we originated $14.3 billion of loans and recorded total net revenues of $489.6 million, Adjusted EBITDA of $101.1 million, Adjusted Net Income of $51.7 million (giving effect to net income as if we were taxed as a C-Corp) and net income of $69.2 million.
The net proceeds from this offering will be put toward working capital and general corporate purposes.