Banking, finance, and taxes

Another Big Mortgage Company Is Ready to Come Public

Chris Lange

Published: October 9, 2020 10:54 am

Guild Holdings has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering. No pricing details were mentioned in the filing, although the offering is valued up to $100 million, though this number is usually just a placeholder. The company intends to list its shares on the New York Stock Exchange under the symbol GHLD.

The underwriters for the offering are BofA Securities, C.L. King, Compass Point, JMP Securities, JPMorgan and Wells Fargo.

This a growth-oriented mortgage company employs a relationship-based loan sourcing strategy to execute on its mission of delivering the promise of homeownership in neighborhoods and communities across the United States. The business model is centered on providing a personalized mortgage-borrowing experience that is delivered by its loan officers and supported by a range of diverse product offerings.

Guild was established in 1960, and it is among the longest-operating seller-servicers in the United States. The company also has expanded its retail origination footprint to 31 states, and it has developed end-to-end technology systems, a reputable brand, industry expertise and many durable relationships with its clients and members of its referral network.

In terms of its finances, the firm detailed this in the report:

For the six months ended June 30, 2020, our total net revenue was $604.3 million, net income was $110.8 million, annualized return on equity was 48.5% and Adjusted Net Income was $238.2 million. For the same period, Adjusted EBITDA was $325.8 million and annualized Adjusted Return on Equity was 104.4%. For the fiscal year ended December 31, 2019, our total net revenue was $712.9 million, net income was $5.6 million, return on equity was 1.3%, Adjusted Net Income was $139.1 million, Adjusted EBITDA was $201.5 million and Adjusted Return on Equity was 32.8%.

The company intends to use the net proceeds from this offering for working capital and general corporate purposes.