Mortgage lender Better's shares sink in Nasdaq debut

BOS Better Online Solutions

24/08/2023 15:12

By Hannah Lang
       Aug 24 (Reuters) - Shares in online mortgage lender
Better's  BETR.O  new public listing plummeted on Thursday as
investors fretted over record-high mortgage rates. 
    Better, whose stock was down 92% at $1.33 in early Nasdaq
trading, went public via a merger with blank-check company
Aurora Acquisition Corp, a deal that was first announced in 2021
but delayed amid a U.S. Securities and Exchange Commission (SEC)
inquiry and multiple rounds of layoffs, regulatory filings show.
    In the interim, roughly 95% of Aurora shareholders redeemed
their holdings, leaving the trust account with just about $24
million at the end of June from about $283 million. Aurora went
public in March 2021.
    The deal will provide Better with an infusion of $550
million from SoftBank, which it will use to expand its mortgage
product offerings in anticipation of a boom in demand for
refinancings next year, when rates are expected to start
falling, Better executives said.
    "We think that this is a really great time for us to be out
there, capitalized with an additional $550 million from SoftBank
that will enable the company to continue to innovate and serve
its customers," CEO Vishal Garg said in an interview.
    Better is going public as U.S. mortgage rates continue to
surge, with the popular 30-year fixed rate last week hitting the
highest level since December 2000, helping drive mortgage
applications to a 28-year low, the Mortgage Bankers Association
said on Wednesday. 

    
    

 (Reporting by Hannah Lang and Lance Tepper in Washington;
Editing by Mark Porter)
 ((Hannah.Lang@thomsonreuters.com;))