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Dan Gilbert's Quicken Loans, the largest U.S. mortgage lender, plans an initial public offering to go public, CNBC reports, citing people familiar with the matter.
The company has filed its IPO prospectus confidentially, and may flip it to be public as soon as next month, CNBC reports.
Quicken Loans is working with Morgan Stanley, Goldman Sachs, Credit Suisse and JPMorgan to manage the deal. The targeted valuation is still being decided, but it is likely in the tens of billions of dollars, one unnamed source tells the network, making it one of the largest IPOs this year.
Companies go for IPOs for different reasons. The most obvious is to raise capital that can be used to expand or pay off debt. Another advantage is that it creates greater public awareness of the company because IPOs generate publicity.
The company "is continuously looking for new ways to invest in and grow our business, while also contributing in significant ways to our home communities," a representative for Quicken and its Rocket Mortgage brand said in a statement published in the Detroit News.
"Given our continued growth, market leadership and strong financial performance, we are frequent targets of rumor and speculation. If, and when, there is news to report, it will come directly from us."
Forbes pegs Gilbert’s wealth at $7.8 billion.
Gilbert suffered a stroke last year, and has been working to recover through physical rehabilitation. In February, he took the stage in a wheel chair at the MGM Grand Detroit and delivered a speech to about 500 people who were anxious to see him appear in public. He was there to receive Crain's Detroit Business Newsmaker Hall of Fame Award.
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He's Back: Dan Gilbert Vows to 'Double Down' on Detroit in Next Decade