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Ellie Mae (ELLI) |
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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
Ellie Mae (AMEX:ELLI) provides an online software network for the residential mortgage industry. The network serves to connect mortgage professionals to mortgage lenders, investors, and service providers. This helps to streamline and automate the origination of mortgages to improve security, efficiency, and regulatory compliance. Ellie Mae makes money by charging a subscription or fee per closed loan to mortgage originators. It also charges lenders and service providers a fee per transaction to use the network.[1]
Because Ellie Mae makes money fundamentally through the volume of mortgage transactions that occur on its site, it relies on the mortgage industry. Mortgage originators are individuals or organizations who provide advise to the homeowner (borrower), help process the loan, verify the information on borrow and the property. Ellie Mae divides originators into three categories:
- Mega Lenders which are typically large commercial banks
- Mortgage Lenders which are mortgage banks, small commercial banks and credit unions.
- Mortgage Brokerages which are independent companies which act as a conduit between the lender and the borrower.
Because most Mega Lenders have their own proprietary software, Ellie Mae focuses on selling its products to Mortgage Lenders and Mortgage Brokerages.[2]
The company's initial public offering of stock on the American Stock Exchange (AMEX) occurred on April 14, 2011. The company offered 7.5M shares each for $6. This was below the $9-$11 initial price range. This offering raised a total of $45M, but had originally planned to raise $75M at the center of the initial price range. The bookrunner of the IPO was Barclays (BCS).[3]
For the full year 2010, Ellie Mae's total revenue was $43M or 14% higher than the previous year. The company's net income .8M, a 53% decrease from the previous year.[4]
References
- ↑ ELLI 2011 S-1/A PROSPECTUS SUMMARY "Overview" pg 1
- ↑ ELLI 2011 S-1/A PROSPECTUS SUMMARY "Mortgage Industry Overview" pg 2
- ↑ Renaissance Capital - IPO Home "Ellie Mae prices IPO at $6, in line with revised expectations" 14 April 2011
- ↑ ELLI 2011 S-1/A PROSPECTUS SUMMARY "Summary Consolidated Financial Data" pg 7
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