US-based credit marketplace Lending Club increased the maximum size of its proposed initial public offering to $671m yesterday and plans to issue 57.6 million shares priced at $10 to $12.
Launched in 2007 and backed by investors including internet company Google and Wells Fargo-backed venture firm Norwest Venture Partners, Lending Club operates an online credit marketplace that has been responsible for $6bn of loans, including $1.2bn in the third quarter of this year alone.
Google Capital, Google’s growth equity unit, invested $125m in Lending Club together with Foundation Capital through a secondary transaction in May 2013 at a $1.55bn valuation.
Norwest is the company’s largest shareholder, owning a 16.3% that will be diluted to 14% through the offering. Other notable shareholders post-IPO will be Canaan Partners (12.6%), Foundation Capital (10.9%) and Morgenthaler Venture Partners (7.9%).
Canaan, Kleiner Perkins Caufield & Byers and Union Square Ventures will sell between 2.3 million and 3.4 million shares each in the IPO.
Not including the secondary investment last year, Lending Club has raised at least $234 in debt and equity since its formation, with previous investors reportedly also including DST Global, Coatue Management, T. Rowe Price, Wellington Management Company, BlackRock, Sands Capital and Thomvest Ventures.
Part of the proceeds will be used to pay off a term loan with an outstanding balance of $49.2m which is set to mature in 2017.
Morgan Stanley, Goldman Sachs, Credit Suisse Securities, Citigroup Global Markets, Allen & Company, Stifel, Nicolaus & Company, BMO Capital Markets, William Blair and Wells Fargo Securities are the underwriters for the offering. They will have the option to issue a further 8.7 million shares to cover over-allotments.
– Photo courtesy of Lending Club