| LendingClub Corporation (proposed stock symbol: LC), the world’s largest non-bank online marketplace facilitating loans between borrowers and investors, has filed a registration statement for its initial public offering. The company has set an initial price range of $10 to $12 per share for the 57,500,000 shares being offered. At the midpoint of that range, the company would be valued at approximately $4 billion. The company’s road show is scheduled to begin on Monday, December 8.
Founded in 2007, the rapidly-growing company has been a pioneer in the field of peer-to-peer lending, using a proprietary online platform and advanced computer algorithms to match those seeking money with those willing to provide it. While the initial lenders on the platform were individuals, a growing percentage of the loans being originated are now funded by mutual funds and hedge funds. To date, the company has facilitated over $6 billion in loan originations.
The offering is being closely watched, as the company is the first of the “alternative lenders” to go public. As such, analysts have not had any comparable companies to value it against. If the offering is successful, we can expect to see IPOs from competitors like Prosper Marketplace, AvantCredit and the small-business specialist OnDeck Capital (which has already filed a registration statement).
2014 has been a banner year for the alternative financing companies, who collectively have raided over $1 billion in new equity financing.
This board has been created for the purpose of discussing LendingClub’s stock price, financial prospects, actual results, management decisions and the merits of its business model, as well as the prospects for the other “alternative lender” companies. It is neither a Bulls nor a Bears board and all opinions are welcome.
LendingClub SEC filings: http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001409970&owner=exclude&count=40&hidefilings=0
LendingClub’s website: https://www.lendingclub.com/
LendingClub’s financial performance
Revenue (millions)
Nine months ending September 30, 2014: $143,007
Year ending December 31, 2013: $98,002
Year ending December 31, 2012: $33,807
Year ending December 31, 2011: $12,752
Net earnings (loss) (millions)
Nine months ending September 30, 2014: ($23,857)
Year ending December 31, 2013: $7,308
Year ending December 31, 2012: ($6,862)
Year ending December 31, 2011: ($12,269)
Earnings (loss) per share (fully diluted)
Nine months ending September 30, 2014: ($.08)
Year ending December 31, 2013: $.02
Year ending December 31, 2012: ($.17)
Year ending December 31, 2011: ($.35)
Loan originations (millions)
Nine months ending September 30, 2014: $2,962,520
Year ending December 31, 2013: $2,064,626
Year ending December 31, 2012: $717,943
Year ending December 31, 2011: $257,364 |
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