Lending Club Corp. has filed with the U.S. Securities and Exchange Commission (SEC) for an initial public offering (IPO). No terms were released for the filing, but it will be worth up to $500 million. The company has not chosen an index to list on, nor has it chosen a ticker symbol. This is a highly anticipated offering for many investors.
The underwriters for the offering are Morgan Stanley, Goldman Sachs, Citigroup, Allen & Company, Stifel, BMO, William Blair and Wells Fargo.
Lending Club is the world’s largest online marketplace connecting borrowers and investors, facilitating more than $5 billion in loans since it first launched in 2007. Its main competition is the traditional banking system, which the company claims to have a more efficient mechanism for capital allocation to borrowers and investors. Lending Club also lets consumers and small business owners to borrow through it to lower their cost of credit. Investors can earn attractive risk-adjusted returns from an asset class that had previously been closed to individual investors.
Compared to traditional banks, Lending Club is more technologically oriented with its online operations, reducing the need for a physical infrastructure and improving convenience. Also the automation in its marketplace increases efficiency by reducing manual processes and improves the client experience.
Since its launch in 2007, Lending Club has experienced significant growth. The company’s loan originations grew to $2.1 billion in 2013, an increase of 188% from $717.9 million in 2012. For the first half of 2014, loan originations were $1.8 billion, up 125% from $799.1 million in the same period a year ago. Revenues increased to $98.0 million in 2013 from $33.8 million in 2012, marking an increase of 190%. The first half of 2014 reported revenues of $86.9, up 134% from $37.1 million from the first half of 2013.
READ ALSO: 3 Business Development Company Stocks With Attractive Dividends
In 20 Years, I Haven’t Seen A Cash Back Card This Good
After two decades of reviewing financial products I haven’t seen anything like this. Credit card companies are at war, handing out free rewards and benefits to win the best customers.
A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges.
Our top pick today pays up to 5% cash back, a $200 bonus on top, and $0 annual fee. Click here to apply before they stop offering rewards this generous.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.