LendingClub, which operates a website that facilitates over $3
billion of annual peer-to-peer lending, filed on Wednesday with the
SEC to raise up to $500 million in an initial public offering. In
the most recent quarter, over $1 billion worth of loans were made
through its website. The company generates most of its revenue from
transaction fees, and first achieved a positive cash flow from
operations last year.
LendingClub's primary shareholders include Norwest Venture
Partners, Canaan, Foundation Capital and Morgenthaler. It intends
to use its IPO proceeds for general corporate purposes and to pay
down debt (currently $50 million).
Revenue increased 134% to $87 million for the six months ended June
30, 2014 compared to the prior year period as the company saw
higher loan originations transacted through LendingClub.com. Its
average transaction fee was 4.5%. Adjusted EBITDA grew 55% to $6
million as the company ramped up sales and marketing and
The San Francisco, CA-based company, which was founded in 2007 and
booked $148 million in sales for the 12 months ended June 30, 2014.
It has not selected a ticker symbol or an exchange. Morgan Stanley,
Goldman Sachs and Citi are the joint bookrunners on the deal. No
pricing terms were disclosed.
Peer-to-peer loan site LendingClub files for a $500
originally appeared on IPO investment manager Renaissance Capital's
web site renaissancecapital.com.
The information and opinions expressed herein were prepared by
Renaissance Capital's research analysts and do not constitute an
offer to buy or sell any security. Renaissance Capital, the
Renaissance IPO ETF (symbol: IPO)
Global IPO Fund (symbol: IPOSX)
, may have investments in securities of companies mentioned.