LendingClub Corp. has amended its filing with the U.S. Securities and Exchange Commission (SEC) to set the terms for its initial public offering (IPO). The proposed maximum aggregate offering price per share was $12 on 57.7 million shares, with an additional overallotment option for underwriters of about 8.7 million shares, resulting in the total filing being worth over $796 million. The company will list on the New York Stock Exchange under the symbol LC.
The underwriters for the offering are Morgan Stanley, Credit Suisse, Goldman Sachs, Citigroup, Allen & Co., William Blair, BMO Capital Markets, Stifel and Wells Fargo.
In this offering, 7.7 million shares are coming from the selling shareholders and the remainder will be from LendingClub.
LendingClub is an online marketplace connecting borrowers and investors. For consumers and small business borrowers, the company leverages its cost advantages and marketplace model to provide borrowers with affordable credit. It utilizes its technology to provide a better experience, offering borrowers a convenient, simple and fast online application that improves the often time-consuming and frustrating loan application process. It has facilitated over $6 billion in loan originations since it first launched in 2007.
ALSO READ: Analyst’s 4 Stocks to Buy With Imminent Catalysts
The marketplace is where borrowers and investors engage in transactions relating to standard or custom program loans. Standard program loans are three-year or five-year personal loans made to borrowers with a FICO score of at least 660 and that meet other strict credit criteria.
LendingClub generates revenue from transaction fees from the marketplace’s role in matching borrowers with investors to enable loan originations, servicing fees from investors and management fees for investment funds and other managed accounts. The company does not assume credit risk or use its own capital to invest in loans facilitated by the marketplace, except in limited circumstances and in amounts that are not material.
LendingClub has experienced significant growth since its marketplace launched in 2007. For the year ended December 2013, it facilitated loan originations through the marketplace of $2.1 billion, up 188% from $717.9 million in the previous year. For the nine months ended in September 2014, the company facilitated loan originations through its marketplace of $3.0 billion, compared to the previous year’s $1.4 billion, representing an increase of 117%. For the 2013 fiscal year, total net revenue was $98.0 million, compared to the previous year’s $33.8 million, representing an increase of 190%. For the nine months ended in September 2014, total net revenue was $143.0 million, up from $64.5 million in the same period of the previous year, an increase of 122%.
The proceeds from this offering will be put toward increasing LendingClub’s capitalization and financial flexibility while also creating a market for its stock.
ALSO READ: Regenerative Medicine Company on Track for IPO This Week
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
