Author Topic: IPO Eve. IPO Changed to $15 a share!  (Read 21926 times)

Ben

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IPO Eve. IPO Changed to $15 a share!
« on: December 10, 2014, 07:31:24 PM »
So Lending Club has decided to change their IPO price from 12 to14 dollars, to a final price of15 dollars a share. I believe this is 30 percent higher than the original 10 dollar amount per share. I'm sure they are trying to get the original investors paid back handsomely by this increase. I don't care. I believe this company has a future. I'm in it for the long haul. What do you folks think about this stock increase? I am interested to know your thoughts. I'm in it for 325 shares. :D

rawraw

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Re: IPO Eve. IPO Changed to $15 a share!
« Reply #1 on: December 10, 2014, 08:00:36 PM »
The share price isn't important.  It's the valuation -- didn't they also sell more shares as well?

brycemason

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Re: IPO Eve. IPO Changed to $15 a share!
« Reply #2 on: December 10, 2014, 08:03:20 PM »
$5.4B

mikedave

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Re: IPO Eve. IPO Changed to $15 a share!
« Reply #3 on: December 10, 2014, 08:31:41 PM »
Based on 2013 financials I calculate the new P/E ratio to be about 740.   This is pricing in an incredible amount of growth.  They would have to grow revenue by ~30X to hit a reasonable PE ratio so 7mil x 30= 210mil  can they do this in a reasonable time frame?  If they were to double revenue every year (something they have badly failed at this year so far) if would take 5-6years growth to make the current valuation reasonable.

Still deciding weather I should take the shares, if I do it will be looking for a quick pop, definitely getting out way before the insiders shares unlock.  This is pure gambling.




DanB

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Re: IPO Eve. IPO Changed to $15 a share!
« Reply #4 on: December 10, 2014, 08:33:41 PM »
The share price isn't important.  It's the valuation -- didn't they also sell more shares as well?

Yeah, it's just an additional 300k shares though................which is an increase of one half of one percent.

PennySaved

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Re: IPO Eve. IPO Changed to $15 a share!
« Reply #5 on: December 10, 2014, 09:44:00 PM »
I just confirmed for 250 shares.  I had already transferred $4K to the Fidelity account, that was the maximum I was willing to spend (gamble)or (lose).  I have never bought any stock of one company directly before, only bought shares of diversified funds.  Part of me thinks I might be crazy for participating in this and part of me says go for it and take a risk.  Just like when I starting investing a bit at a time in LC loans back in March 2009 and that has worked out well for me, so far.  Does any one know what the broker fee will be?

yojoakak

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Re: IPO Eve. IPO Changed to $15 a share!
« Reply #6 on: December 10, 2014, 09:44:33 PM »
$5.4B

That seems like a lot. What can we compare it to? Who are LendingClub's competitors?

I only put $5000 in my account. Now I have to transfer more money.

An interesting chart: https://3.bp.blogspot.com/-crqXAPbmrsc/VIjqeRcl5II/AAAAAAAACP0/A63Poqd4ylM/s1600/EZ_LendingClub-Path-to-IPO.png

EDIT: Oh you can change how many shares you want when you get to the confirmation page. I didn't know that!
« Last Edit: December 10, 2014, 10:02:26 PM by yojoakak »

core

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Re: IPO Eve. IPO Changed to $15 a share!
« Reply #7 on: December 10, 2014, 09:47:46 PM »
Does any one know what the broker fee will be?

$7.95 commission when you sell.  Assuming you sell them all at once.

Fred

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Re: IPO Eve. IPO Changed to $15 a share!
« Reply #8 on: December 10, 2014, 10:23:15 PM »
An interesting chart: https://3.bp.blogspot.com/-crqXAPbmrsc/VIjqeRcl5II/AAAAAAAACP0/A63Poqd4ylM/s1600/EZ_LendingClub-Path-to-IPO.png

Looks like the top 5 shareholders hold more than 50% of total shares.

Laplanche has ~15 million shares, for $223 MM.

Congrats to all.

yojoakak

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Re: IPO Eve. IPO Changed to $15 a share!
« Reply #9 on: December 10, 2014, 11:39:42 PM »
URGENT QUESTION!

The email says "To be eligible for an allocation of shares in this offering, you MUST confirm your indication of interest through the Directed Share web site using the link below or by calling 800-358-2670 by 5:00 AM ET tomorrow, December 11, 2014"

But the website says "Deadline: December 10, 2014 Midnight ET" and also "To remain eligible to receive an allocation of shares, you must confirm your indication of interest using the Directed Share Web Site or by calling 800-358-2670 between 6:00pm ET and midnight on the date of effectiveness and pricing, which is expected to occur on 12/10/2014."

Which is correct?
« Last Edit: December 10, 2014, 11:47:05 PM by yojoakak »

JoeB

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Re: IPO Eve. IPO Changed to $15 a share!
« Reply #10 on: December 10, 2014, 11:40:40 PM »
5am
Best to all,

JB

mikedave

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Re: IPO Eve. IPO Changed to $15 a share!
« Reply #11 on: December 10, 2014, 11:47:38 PM »
after some consideration I decided not invest to the ratio of what I could gain to what I could lose just seems way too high.  Might live to regret this,best of luck to those that decide to invest.  To those that decide to stay I would strongly consider getting out before the lockup period is over (180 days).  Often IPOs tank once the insiders are allowed to sell.

Fred

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Re: IPO Eve. IPO Changed to $15 a share!
« Reply #12 on: December 10, 2014, 11:48:54 PM »
calling 800-358-2670 by 5:00 AM ET ...

I suspect this means the phone will be answered by somebody in Europe or Asia ;-)

But the website says "Deadline: December 10, 2014 Midnight ET"

Take this time instead.  It is the safer option, and you might be talking to somebody in US Pacific timezone. 

You have 10 minutes to go ...

yojoakak

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Re: IPO Eve. IPO Changed to $15 a share!
« Reply #13 on: December 11, 2014, 12:05:20 AM »
Just got this on the website;

"The indication of interest period for the new issue you have selected is closed. You may only reduce the quantity of your indication of interest at this time."

flojoflojo

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Re: IPO Eve. IPO Changed to $15 a share!
« Reply #14 on: December 11, 2014, 01:58:51 AM »
What a complete scam, having the price go up from $10-12, then $12-14, and now $15. Typical Wall Street.