Dan Gilbert would keep control under Quicken Loans IPO
Company filed with SEC to take Rocket Companies Public on Tuesday
DETROIT (AP) — Quicken Loans would become part of Rocket Companies under an initial public stock offering that would keep founder Dan Gilbert in firm control.
A filing Tuesday with the Securities and Exchange Commission said Gilbert would have control with 79% voting power in a multi-tiered stock structure.
Rocket Companies would be more than Quicken Loans, the Detroit-based mortgage lender. It would include a real estate title company, a home search platform, a personal loan provider and a used car business.
“Essentially, Dan Gilbert is maintaining full control of the company,” said David Kudla, chief investment strategist at Mainstay Capital Management.
Gilbert, who also owns the NBA's Cleveland Cavaliers, has been recovering from a 2019 stroke. He has played a critical role in buying and rehabbing commercial buildings all over downtown Detroit.
Rocket Companies had net income of $97 million in the first quarter of 2020, according to the SEC filing.