Author Topic: Lending Club IPO  (Read 4329 times)

Half Right

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Lending Club IPO
« on: June 27, 2014, 03:24:49 PM »

WSJ: Lending Club hires banks for IPO

    The WSJ reports Lending Club, owner of a fast-growing P2P lending platform, has hired Goldman and Morgan Stanley (among other banks) to take it public. An offering could arrive by year's end.
    Lending Club was valued at $3.75B in a recent funding round, after getting valued at just $2.3B in a round last year. The company has handled over $4B worth of personal loans (both from individuals and financial firms) over its lifetime, and is looking to expand into additional types of credit.
    This spring, Lending Club bought Springstone Financial, an issuer of loans meant to help parents pay for private school tuition, for $140M.
    Google reportedly took an 8% stake in Lending Club last year.

Fred

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Re: Lending Club IPO
« Reply #1 on: June 27, 2014, 04:11:09 PM »
    The WSJ reports Lending Club, owner of a fast-growing P2P lending platform, has hired Goldman and Morgan Stanley ...

I was with both GS and MS for several years  8).  Great companies to work for, but "expensive" for clients.

I think they will add credibility to the LC's plans.  Will watch this process closely.

brycemason

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Re: Lending Club IPO
« Reply #2 on: June 27, 2014, 05:12:40 PM »
Bring it on! So excited.

Peter

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Re: Lending Club IPO
« Reply #3 on: June 27, 2014, 05:49:51 PM »
The story was broken by the Financial Times (free registration needed):
http://www.ft.com/intl/cms/s/0/1f5f9356-fe0e-11e3-bd0e-00144feab7de.html?siteedition=intl#axzz35sVnSnZZ

The good news for us little investors came in this quote from the WSJ:
"The company is contemplating allocating more shares than is typical to small retail investors, though the details are being ironed out, people familiar with the deal said."

I know some people here have expressed interest in participating so it looks like you may get your chance.
Publisher of the Lend Academy blog

See my returns here: http://www.lendacademy.com/returns

Fred93

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Re: Lending Club IPO
« Reply #4 on: June 27, 2014, 06:38:00 PM »
So excited.

Unfortunately, so are a lot of other people!  This will make the IPO shares expensive.  Likely in the $5.5B to $8B range.  We're going to have to make a difficult judgements about the price.

brycemason

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Re: Lending Club IPO
« Reply #5 on: June 28, 2014, 09:59:35 PM »
I'm sure you're right, but I want to take a very long term horizon on this one. So, even if it's overvalued now, I think in 15 years it will pay off big.

Fred93

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Re: Lending Club IPO
« Reply #6 on: June 29, 2014, 03:50:57 AM »
The FT article has been updated. 

It now says they're looking to raise $500 M at a valuation of $5 B. 

Must have been a leak out of GS or MS.  Of course the real valuation will not be set until MS has built a book of investment intentions of major investors.  That's a few months away.

rawraw

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Re: Lending Club IPO
« Reply #7 on: June 29, 2014, 08:07:50 AM »
I'm sure you're right, but I want to take a very long term horizon on this one. So, even if it's overvalued now, I think in 15 years it will pay off big.
Depends on how overvalued it is. But I'll probably be investing some too, but I'll going to wait after the IPO craziness.

cardinalrose

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Re: Lending Club IPO
« Reply #8 on: June 30, 2014, 10:47:21 PM »
What happens to all of the S-1's filed by Lending Club for each individual member dependent note once it is a publicly traded company?  Does Lending Club continue creating similar securities? Or will their publicly traded corporate umbrella enable them to issue notes without the filing process?  Is there any need to consolidate all of the existing S-1 securities into the IPO S-1?