Cleveland Cavs owner’s Quicken Loans/Rocket Mortgage files for IPO

The group of mortgage-related businesses owned by Cleveland Cavaliers owner Dan Gilbert, including Quicken Loans and Rocket Mortgage, has filed for an initial public offering.

The new entity will be called Rocket Companies.

Rocket Mortgage, the flagship business, is the largest retail mortgage originator, according to paperwork filed with the U.S. Securities and Exchange Commission on Tuesday. It’s provided $1 trillion-plus in home loans since launching, with its market share jumping from 1.3% in 2009 to 9.2% in the first quarter of 2020.

Rocket Companies wants to list on the New York Stock Exchange under the symbol RKT.

Gilbert, who founded the business in 1985, will retain control of Rocket Companies with 79% of the combined voting power of the common stock.

For the first quarter of this year, ending March 31, it had income of $97.7 million and revenue of $1.8 billion versus a $299 million loss and revenue of $727 million in the first quarter of 2019, the Form S-1 says.

It explains that the company is “obsessed with helping our clients achieve the American dream of home ownership, and financial freedom. We are committed to providing an industry-leading client experience powered by our award-winning culture, and innovative technologies. We believe our widely recognized ‘Rocket’ brand is synonymous with providing simple, fast, and trusted digital solutions for complex personal transactions.”

Other business that are part of the Detroit-based constellation include Amrock, Rocket Homes, Rocket Loans, Rock Connections, Rocket Auto, and Core Digital Media.

Rocket Companies employs about 20,000 people.

Gilbert bought the Cleveland NBA team for $375 million in 2005. What had been called Quicken Loans Arena, nicknamed The Q, was renamed Rocket Mortgage FieldHouse in April 2019.