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The MReport Webcast: Monday 11/16/2015

On the day before it was set to go public, loanDepot announced it would delay its initial public offering amid volatile market conditions. According to a statement filed with the Securities and Exchange Commission on Tuesday, the lender was planning to offer 26 point 4 million shares of its common stock on Friday, valued at 16 dollars to 18 dollars per share. The move was expected to raise 475 million dollars for the company, which was to be valued at 2 point 6 billion dollars.On the day before it was set to go public, loanDepot announced it would delay its initial public offering amid volatile market conditions. According to a statement filed with the Securities and Exchange Commission on Tuesday, the lender was planning to offer 26 point 4 million shares of its common stock on Friday, valued at 16 dollars to 18 dollars per share. The move was expected to raise 475 million dollars for the company, which was to be valued at 2 point 6 billion dollars.

The company planned to offer as many as 30 million shares. But on Thursday, the company announced that it will postpone the biggest IPO of the week, due to rough conditions in the market. Conditions have been stormy on Wall Street to say the least. On Thursday, the Dow Jones Industrial Average dropped 254 point 15 points, or nearly 1 point 5 percent. Over the preceding week, it has dropped a total of 2 point 3 percent.

As a sign that the housing market is returning to normal, sellers are more likely to be selling their homes due to life-cycle motivators like upgrading or downsizing rather than securing a home before interest rates are adjusted by the Federal Reserve. A Redfin survey showed that last year, 59 percent of sellers said that they are buying a home before interest rates or prices rise as the top reason to sell. This year, in Ocotber, that number reached 16 percent, revealing that historically low interest rates are not a top concern for buyers.

 

About Author: Seth Welborn

Seth Welborn is a Harding University graduate with a degree in English and a minor in writing. He is a contributing writer for MReport. An East Texas Native, he has studied abroad in Athens, Greece and works part-time as a photographer.
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