Online Peer-to-Peer Banker LendingClub's IPO Priced at $15 a Share

Features Reuters

The initial public offering of LendingClub Corp, the world's largest online marketplace directly connecting borrowers and investors, was priced at $15 per share, above its expected price range of $12-$14, underwriters said.

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The IPO raised about $865.5 million from selling 57.7 million shares, valuing the company at about $5.4 billion.

LendingClub sold 50 million shares, while selling stockholders offered the rest.

The company's shareholders include Norwest Venture Partners, Foundation Capital LP, Morgenthaler Venture Partners and Canaan LP.

Peer-to-peer lending lets investors lend directly to individuals and businesses and uses low-cost online platforms to reduce the difference between low return on deposits and high interest rates for consumer credit.

LendingClub reported net loss of $23.9 million for the nine months ended Sept. 30, compared with a profit of $4.4 million, a year earlier. Revenue more than doubled to $143 million.

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The stock is expected to start trading on the New York Stock Exchange on Thursday.

The company plans to use the proceeds from the IPO for repayment of debt and general corporate purpose.

Morgan Stanley, Goldman Sachs & Co, Citigroup and Credit Suisse were the lead underwriters.

(Reporting by Neha Dimri and Amrutha Gayathri in Bengaluru; Editing by Joyjeet Das)