US-based online lending platform OnDeck Capital set the range for its initial public offering between $16 and $18 a share yesterday and will look to raise up to $180m.
Founded in 2006, OnDeck provides small business loans, using data analytics to assess their creditworthiness. It has made a net loss of $14.4m in the first nine months of 2014, down from an $18.7m loss in the same period of 2013, but its revenues more than doubled over the same period to $99.9m.
OnDeck has raised approximately $157m in equity funding and $227m in debt since it was formed, and its investors include Google Ventures, the corporate venturing arm of internet company Google, and Sapphire Ventures, the venture firm affiliated with software developer SAP.
Sapphire owns a 9.9% stake that will be diluted to 8.4% in the offering, while Google Ventures’ 6.2% stake will decrease to 5.3%.
The company’s largest shareholder is RRE Ventures, which will hold a 12.8% stake post-IPO, and other investors include Institutional Venture Partners (12% post-IPO), Village Ventures (9%), Tiger Global (5%) and First Round Capital (4.7%).
The underwriters, for which Morgan Stanley and Merrill Lynch are serving as representatives, will have the option to buy a further 1.5 million shares, which could potentially increase the size of the offering to $195m.