LendingClub (LC) Raises Expected IPO Price Range to $12-$14

December 8, 2014 9:51 AM EST

In an amended S-1 filing with the SEC, LendingClub (NYSE: LC) raised the expected price range of its upcoming IPO from $10-$12 to $12-14. The company still plans to sell 57,700,000 shares in the offering, which is expected this week. The stock has been approved for listing on the New York Stock Exchange under the symbol "LC."

Triton Research rates the IPO a 7.60, which was recently revised from 8.05. This versus their average IPO score of 6.57.

Morgan Stanley & Co. LLC and Goldman, Sachs & Co. will act as joint lead book-running managers and as representatives of the underwriters for the proposed offering. Citigroup Global Markets Inc. is also acting as book-running manager for the proposed offering. Allen & Company LLC is acting as lead manager, with Stifel, Nicolaus & Company, Incorporated, BMO Capital Markets Corp., William Blair & Company, L.L.C., and Wells Fargo Securities, LLC acting as co-managers for the proposed offering.

Lending Club is the world’s largest online marketplace connecting borrowers and investors. The company's platform has facilitated over $5 billion in loans since it first launched in 2007, including over $1 billion in the second quarter of 2014. The company believes a technology-powered online marketplace is a more efficient mechanism to allocate capital between borrowers and investors than the traditional banking system. Consumers and small business owners borrow through Lending Club to lower the cost of their credit and enjoy a better experience than traditional bank lending. Investors use Lending Club to earn attractive risk-adjusted returns from an asset class that has historically been closed to individual investors and only available on a limited basis to institutional investors.

For the years ended December 31, 2012 and 2013, the company facilitated loan originations through our platform of $717.9 million and $2.1 billion, respectively, representing an increase of 188%. For the six months ended June 30, 2013 and 2014, they facilitated loan originations through our platform of $799.1 million and $1.8 billion, respectively, representing an increase of 125%. For the years ended December 31, 2012 and 2013, total net revenue was $33.8 million and $98.0 million, respectively, representing an increase of 190%. For the six months ended June 30, 2013 and 2014, total net revenue was $37.1 million and $86.9 million, respectively, representing an increase of 134%. As the business has grown, they have achieved increasing levels of operational efficiency while continuing to invest in our business. For the years ended December 31, 2012 and 2013, adjusted EBITDA was $(4.9) million and $15.2 million, respectively. For the six months ended June 30, 2013 and 2014, adjusted EBITDA was $3.8 million and $5.9 million, respectively.



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