Author Topic: LendingClub IPO Directed Share Program through Fidelity  (Read 77095 times)

brycemason

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LendingClub IPO Directed Share Program through Fidelity
« on: November 17, 2014, 04:09:37 PM »
Email Text -- Good thing I already have a brokerage account through Fido. Clicked the button in the email and it indeed had me log in and took me to the settings page, but some sort of positive confirmation would have been nice.

Lending Club IPO - Directed Share Program (DSP)
Dear Investor,

As you may know, Lending Club filed a registration statement with the Securities and Exchange Commission to sell common stock through an initial public offering (IPO). We currently expect to reserve a portion of our IPO shares for investors like you through a directed share program (DSP) administered by Fidelity Investments ("Fidelity"). To be eligible to participate, you'll need to open a brokerage account with Fidelity and meet certain suitability requirements.

In order for Fidelity to provide information regarding the procedures of the DSP to you, we need your authorization to share your contact information with Fidelity. By clicking "yes" you authorize us to share the name, email address, and phone number associated with your Lending Club account with Fidelity. Please ensure that your contact information is current and accurate in your Lending Club account. If you do not respond, you will not be contacted.

Confirm Your Email Address

Clicking this button will take you to the Settings section of your account, which will confirm your authorization that we share your contact information with Fidelity.


We are unfortunately unable to answer questions about the IPO, including share price, minimum and maximum DSP investment levels, or other details about the DSP at this time.

This email does not constitute an offer to purchase Lending Club stock - any offer to purchase Lending Club stock will be made solely by the underwriters pursuant to a prospectus. Whether or not an IPO occurs depends on many things including market conditions. Responding to this notice does not obligate you to participate in the DSP, nor is Lending Club obligated to offer DSP shares or ensure that you will receive DSP shares.

Please respond no later than 12:00 p.m. noon (PT) on Sunday November 23, 2014. IF YOU DO NOT RESPOND TO US BY 12:00 p.m. noon (PT) on Sunday November 23, 2014, WE WILL NOT SHARE YOUR INFORMATION WITH FIDELITY AND YOU WILL NOT BE ELIGIBLE TO PARTICIPATE IN THE DSP.

A Registration Statement relating to Lending Club's common stock has been filed with the Securities and Exchange Commission but has not yet become effective. The shares may not be sold nor may offers to buy be accepted prior to the time the Registration Statement becomes effective. This letter shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the shares in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State.

No offer to buy the securities can be accepted and no part of the purchase price can be received until the registration statement has become effective, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time prior to notice of its acceptance given after the effective date. A response to this email will involve no obligation or commitment of any kind.

Best regards,

The Lending Club Team
« Last Edit: November 17, 2014, 04:11:50 PM by brycemason »

toiletpaper55

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Re: LendingClub IPO Directed Share Program through Fidelity
« Reply #1 on: November 17, 2014, 04:33:10 PM »
Just got the email and clicked the button to participate. it directed me to my login. i logged in and it went on my account settings page but there was never anything that indicated that I "confirm your authorization that we share your contact information with Fidelity."

... is there anything else i have to do...?

rockinray

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LendingClub IPO Directed Share Program through Fidelity
« Reply #2 on: November 17, 2014, 04:46:47 PM »
Same for me. I do not think we have to do anything else.

I agree some sort of acknowledgement would have been nice.


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rawraw

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Re: LendingClub IPO Directed Share Program through Fidelity
« Reply #3 on: November 17, 2014, 04:54:39 PM »
Just got the email and clicked the button to participate. it directed me to my login. i logged in and it went on my account settings page but there was never anything that indicated that I "confirm your authorization that we share your contact information with Fidelity."

... is there anything else i have to do...?
You have to ensure your contact info is correct.  I am very thankful you posted this, as my LC emails go to an email address specifically for the service.

core

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Re: LendingClub IPO Directed Share Program through Fidelity
« Reply #4 on: November 17, 2014, 05:13:24 PM »
some sort of positive confirmation would have been nice

Indeed.  That click was less than fulfilling.  Changing the hash does result in an error rather than the usual 302 redirect so at least that indicates something real might be happening behind the scenes.

Quote
Clicking this button will take you to the Settings section of your account, which will confirm your authorization that we share your contact information with Fidelity.

Taking that sentence literally, the very act of visiting your settings page is what triggers it.  Depends on who is doing the confirming, me or them?  I don't think that's what they meant.  What an awkward sentence.  They must have pulled the janitor away from his programming duties to write this mailing.

I signed up for Fidelity already, after scanning the agreements to make sure there weren't any monthly maintenance fees for taxable accounts.  I wonder how long they'll ban me from future IPO participation if I dump the shares within a month.  Nothing lost really as I don't want to be a customer of theirs anyway.

rawraw

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Re: LendingClub IPO Directed Share Program through Fidelity
« Reply #5 on: November 17, 2014, 05:43:50 PM »
I'm a Fidelity customer because it used to be the only 2% cash back card

DanB

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Re: LendingClub IPO Directed Share Program through Fidelity
« Reply #6 on: November 17, 2014, 06:22:01 PM »
some sort of positive confirmation would have been nice

Indeed.  That click was less than fulfilling.  Changing the hash does result in an error rather than the usual 302 redirect so at least that indicates something real might be happening behind the scenes.

Quote
Clicking this button will take you to the Settings section of your account, which will confirm your authorization that we share your contact information with Fidelity.

Taking that sentence literally, the very act of visiting your settings page is what triggers it.  Depends on who is doing the confirming, me or them?  I don't think that's what they meant.  What an awkward sentence.  They must have pulled the janitor away from his programming duties to write this mailing.

I signed up for Fidelity already, after scanning the agreements to make sure there weren't any monthly maintenance fees for taxable accounts.  I wonder how long they'll ban me from future IPO participation if I dump the shares within a month.  Nothing lost really as I don't want to be a customer of theirs anyway.

Why would you care if there are any monthly maintenance fees if you don't want to be a customer of theirs anyway &/or if you are planning on dumping the shares within a month?  :)  Regardless, I find your interest in this "fascinating". (not really, but Peter's not around, so I'll use the word)  Are we to assume that you see a 200% or so short term pop? Given the p2p trading returns you've announced here, I'd imagine anything much below that wouldn't be a prudent allocation of capital for you.

brother7

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Re: LendingClub IPO Directed Share Program through Fidelity
« Reply #7 on: November 17, 2014, 06:33:51 PM »
I'm a Fidelity customer because it used to be the only 2% cash back card
I'm in the same boat as rawraw... happy Fidelity AMEX 2% cashback cardholder that I use for all Costco purchases. That's the only reason I opened a Fidelity brokerage account, as my main stock brokerage is Schwab.
For those interested, the hot cashback card now is Citi's Double Cash card.

Eagerly awaiting more details about participating in LC's IPO.

toiletpaper55

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Re: LendingClub IPO Directed Share Program through Fidelity
« Reply #8 on: November 17, 2014, 06:39:10 PM »
some sort of positive confirmation would have been nice

Indeed.  That click was less than fulfilling.  Changing the hash does result in an error rather than the usual 302 redirect so at least that indicates something real might be happening behind the scenes.

Quote
Clicking this button will take you to the Settings section of your account, which will confirm your authorization that we share your contact information with Fidelity.

Taking that sentence literally, the very act of visiting your settings page is what triggers it.  Depends on who is doing the confirming, me or them?  I don't think that's what they meant.  What an awkward sentence.  They must have pulled the janitor away from his programming duties to write this mailing.

I signed up for Fidelity already, after scanning the agreements to make sure there weren't any monthly maintenance fees for taxable accounts.  I wonder how long they'll ban me from future IPO participation if I dump the shares within a month.  Nothing lost really as I don't want to be a customer of theirs anyway.

So it's probably prudent to open and fund an account if you don't already have one...i figure any announcement or movement on this will move quickly...

core

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Re: LendingClub IPO Directed Share Program through Fidelity
« Reply #9 on: November 17, 2014, 07:11:48 PM »
Are we to assume that you see a 200% or so short term pop? Given the p2p trading returns you've announced here, I'd imagine anything much below that wouldn't be a prudent allocation of capital for you.

No, I do not expect a huge pop, but I do expect some.  If it does not materialize it won't be much loss.  As for my allocation of capital, I have said numerous times here that I am already making as many dollars as I can on Folio.  Depositing more cash in LC will do nothing but lower my returns. 

Honestly the only reason I'm planning on monkeying with the IPO at all is for the entertainment value.  I think I'll get more entertainment though from shorting the stock a month or two in, and watching all the frownie faces around here as Wall Street discovers how incompetent LC really is.

I'm a Fidelity customer because it used to be the only 2% cash back card

Paypal debit (1.5%) linked to Smart Connect, then pay SC with a Discover 1% card via Evolve == 2.5% on misc category purchases, all without leaving the house and no MS-like activities required.   I don't have much use for 2% cards anymore.

mo

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Re: LendingClub IPO Directed Share Program through Fidelity
« Reply #10 on: November 17, 2014, 07:38:57 PM »
Quote
To be eligible to participate, you'll need to open a brokerage account with Fidelity and meet certain suitability requirements.

Any guesses what the "suitability requirements" will be?  I've been a Fidelity customer for a while and I'm pretty happy with them but last I checked their IPO participation requirements generally speaking were one of the following three things depending on the IPO and the interest level; over $500k in your account, over $100k in your account of over 36 trades per year.  Hope that won't be the case here.

https://www.fidelity.com/stock-trading/faqs-ipos

Edit: On second thought if the below article is true and they are IPOing at a $5 billion valuation it's hard to see how profits could have grown enough from the 2013 numbers (EBITDA was $15.2 million) to support that.

https://www.pehub.com/2014/11/lendingclub-with-plans-to-go-public-also-seeks-a-buyer/
« Last Edit: November 17, 2014, 07:52:00 PM by mo »

PennySaved

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Re: LendingClub IPO Directed Share Program through Fidelity
« Reply #11 on: November 17, 2014, 09:04:17 PM »
I did not see the LC IPO email from Lending Club in my inbox for the email address I use for my main LC account.  So I decided to check the email for my Roth LC account (different email address) and the IPO email was there.  I hardly check this email.  So when I click on the link in the IPO email, it takes me to  a LC sign-in page with my main LC account email address (not the Roth LC email address) and so I signed in with the main LC email address.  Kinda confusing.  I do have a Fidelity account, mostly to take advantage of the 2% cashback Fidelity Amex. 


hessinger

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Re: LendingClub IPO Directed Share Program through Fidelity
« Reply #12 on: November 17, 2014, 09:25:58 PM »
Paypal debit (1.5%) linked to Smart Connect, then pay SC with a Discover 1% card via Evolve == 2.5% on misc category purchases, all without leaving the house and no MS-like activities required.   I don't have much use for 2% cards anymore.

Sorry to take this offtopic, but can you expand upon this?

I thought paypal cards only offer 1% cash back and doesn't paying via SC act as a cash advance? Isn't there a fee from Discover on this?

https://www.paypal.com/webapps/mpp/debit-card#features

core

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Re: LendingClub IPO Directed Share Program through Fidelity
« Reply #13 on: November 17, 2014, 10:07:58 PM »
You know, I've been thinking about this silly link redirect thing... Really, how hard would it be to have a message saying "Thanks, we're now sharing your junk with Fidelity.  Hope you meant to do this because it's not reversible.  Also we hope you're a human and the link was not clicked by a link pre-fetcher or spam filter."  That is really not hard. 

This is just odd the way they did this.  Last time I saw crap like that was when the marketing department at a company I worked for went off and did their own thing with a portion of the site and didn't want to involve the programming department nor anyone else for that matter.  So they ended up kludging things together with tools that were not designed for the purpose.  That's what this stunt looks like to me.

I thought paypal cards only offer 1% cash back and doesn't paying via SC act as a cash advance? Isn't there a fee from Discover on this?

Yes new accounts only get 1.0%.  Sorry I should have said in the post that you had to have the 1.5% deal on an existing PP card because you won't get it now as a new signup.  As for Discover treating Evolve payments as a cash advance, no they are not charged a cash advance fee.  It's always a good idea to set your cash advance limit to $0 though because they could change things in the future.   Not that they will.  Discover is just lucky to have people using their cards for something besides the 5% quarterly categories.

DanB

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Re: LendingClub IPO Directed Share Program through Fidelity
« Reply #14 on: November 17, 2014, 10:21:59 PM »
Wow, I'd have bet (& lost) serious money this morning if someone had said then that 7-8 hours would pass without at least 1 person saying that they didn't get a notification email................because I suspect it wasn't sent out to everyone.