Indianapolis-based Stonegate Mortgage Corp. has reportedly filed with the Securities and Exchange Commission for an initial public offering (IPO), however, the company is yet to announce how much it intends to raise or on which exchange its shares will trade.
According to a report in the Indianapolis Business Journal, Stonegate filed under a provision of the 2012 Our Business Startups Act that allows firms to keep financials confidential until 21 days before they promote the stock. This way, it can keep its financials out of public view until it is sure it will move forward with the IPO. The provision also reduces the amount of time competitors and others can pick apart the company's operations.
Fast-growing Stonegate saw revenue grow from $15.5 million in 2010 to $95.5 million in 2012, according to the report. The company does business in more than 30 states, up from 20 at the end of 2011, and plans to expand to the 48 continental states by the end of this year.
In May, Stonegate raised $115 million by selling shares in a private offering of its common stock. FBR Capital Markets & Co. acted as the sole initial purchaser and placement agent. In the transaction, Stonegate sold a total of 6.4 million shares at an offering price of $18 per share. The total net proceeds were approximately $106.8 million.
At the time, the firm said it would use the funds to fuel originations of jumbo loans and to build its portfolio of servicing contracts. In addition, it was to use about $10 million to pay off debt.
The firm also received a $30 million infusion of capital from New York-based private investment firm Long Ridge Equity Partners in March 2012.
In September, Stonegate purchased warehouse lender NattyMac, which enabled it to offer more products and services to its commercial customers. The result is that independent mortgage bankers dealing with Stonegate now have access to warehouse financing and liquidity for their agency loans.