loanDepot has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). No terms were given in the filing, but the offering is valued up to $100 million. The company intends to list on the New York Stock Exchange under the symbol LDI.
The underwriters for the offering are Morgan Stanley, Goldman Sachs, Wells Fargo, Barclays, UBS Investment Bank and BMO Capital Markets.
This is a leading technology-enabled U.S. consumer lending platform. loanDepot 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. The company is the nation’s second largest direct-to-consumer non-bank originator by annual funded loan amount and have facilitated over $50 billion in total funding since inception.
The company currently offers a broad suite of consumer credit products to customers, ranging from home loans to unsecured personal loans. The 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, it originated $22.1 billion in loans, representing 125% year-over-year growth. Moreover, the company has generated this substantial growth while maintaining profitability since 2012.
In terms of the finances, loanDepot said in the filing:
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 company intends to use the net proceeds from this offering to pay down its indebtedness, for working capital and for general corporate purposes.
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