Rocket to Cut IPO to About $2 Billion from $3.3 Billion
- Mortgage giant now set to market shares at $18 to $20 apiece
- IPO seeking about $2 billion down from as much as $3.3 billion
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Rocket Companies Inc., the parent of the mortgage giant founded by billionaire Dan Gilbert, is now seeking to raise about $2 billion in an initial public offering after initially targeting as much as $3.3 billion, according to people familiar with the matter.
The Detroit-based company -- which expects to price its IPO Wednesday -- is set to market a reduced number of shares at about $18 to $20 apiece, said the people, who asked to not be identified because the matter isn’t public. The reduction comes as investors pushed back on the company’s valuation, believing it should be priced as a consumer or financial company rather than a technology business, one of the people said.