Specialty mortgage lender Rock Financial Corp. filed last week for an initial public offering of 3.33 million shares at a maximum price of $10 a share.
Rock Financial was the second company that makes subprime mortgage loans to announce last month that it would go public. Several other specialty finance companies are waiting in the wings, analysts say, despite a recent downturn in the sector's stock prices.
Rock Financial makes debt consolidation and home loans for one- to four- family properties and sells them into the secondary market. The lender serves both A-quality and subprime borrowers.
Last year, Rock Financial originated $1.2 billion in loans through 25 retail outlets in seven states.
Bear, Stearns & Co. will be the managing underwriter for the deal and will receive an option to buy an additional 499,500 shares for overallotments.