Peer-to-peer loan site LendingClub files for a $500 million IPO

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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 stock-based compensation.

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.

The article Peer-to-peer loan site LendingClub files for a $500 million IPO originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.

Investment Disclosure: 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) or the Global IPO Fund (symbol: IPOSX) , may have investments in securities of companies mentioned.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: News Headlines , IPOs

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