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Finance of America goes public

The end-to-end platform for credit and services will begin trading stocks on the New York Stock Exchange starting Monday.

After months of preparation, Finance of America launched its company on Thursday following the completed transaction with Replay Acquisition Corp. brought to the stock exchange.

Finance of America, an unbanked mortgage lender, merged with Replay Acquisition Corp., a publicly traded special purpose vehicle company. Upon completion of the merger, the company went public and its common stock and warrants will trade on Monday, April 5th on the New York Stock Exchange under the ticker symbols “FOA” and “FOA.WS”, respectively.

The latest to go public lately IPO madnessFinance of America went public after the merger with a value of $ 1.9 billion. With this merger, institutional investors made one private investment of $ 250 million in the company. The Blackstone Group will hold a majority stake in the company with a 70 percent stake.

Finance of America follows a number of other top lenders in the IPO including United Wholesale Mortgage, Home Point Capital, LoanDepot, and Rocket Mortgage. Although 2020 saw the highest IPO fundraising activity in a decade, other lenders like Caliber Home Loans and AmeriHome Mortgage have delayed IPO plans.

While some mortgage lenders, such as B. LoanDepot and Rocket Mortgage, taking the traditional route to IPO, Home Point made a secondary offering, while Finance America and UWM decided to go public through a special purpose vehicle.

SPACs, also known as blank check companies, are growing in popularity and in recent years have been attracting a number of notable underwriters and collecting a record amount of IPO funds. A SPAC merger allows a company to go public and generate capital inflow faster than a traditional IPO, since a SPAC acquisition can be completed in just a few months, while an IPO with the SEC can take up to six months. Critics say the growing popularity of SPACs could backfire if a disproportionate number of companies using abbreviations to go public fail to produce results.

“W.As a publicly traded company, we are excited to enter our next chapter of growth and capitalize on the many opportunities ahead, ”said Patricia Cook, CEO of Finance of America, in a statement. “Our value proposition is truly unique in that we have been proven to innovate and deliver complementary financial solutions that consumers and investors will appreciate. These properties should continue to give us a sustainable competitive advantage. Today’s milestone would not be possible without the support of everyone on our team who have worked diligently and passionately to advance our mission. “

The company will go public in 2020 after a year of rapid growth. Finance of America’s Fourth Quarter Results The report showed annual pre-tax income of $ 500 million, an increase of 541 percent over the previous year. In 2019, the company posted pre-tax profits of just $ 78 million. Total funding increased 70 percent to $ 32.63 billion in 2020 from $ 19.16 billion in 2019.

“What began eight years ago as a novel idea to reinvent the traditional financial enterprise model has led to the sustained growth of a unique end-to-end consumer credit platform that can meet the needs of borrowers while delivering strong returns for investors” said Brian Libman, chairman and founder of Finance of America. “I am proud and humble to reach this point in the development of Finance of America and I remain determined to advance the company’s strategic priorities.”


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