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
The Average American Has No Idea How Much Money You Can Make Today (Sponsor)
The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.
But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
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.