LendingClub files for IPO

By on
LendingClub files for IPO

World's largest online P2P lender cashes up to disrupt.

LendingClub, the world's largest online marketplace connecting borrowers and investors directly, filed with U.S. regulators for an initial public offering of common stock.

Peer-to-peer lending allows investors to lend directly to individuals and businesses, cutting out banks via low-cost online platforms.

LendingClub has facilitated over US$5 billion in loans since it was launched in 2007. The company's revenue more than doubled to US$87.3 million in the six months ended June 30 from a year earlier.

The peer-to-peer lending industry became prominent during the global financial crisis, plugging a hole left by cash-strapped banks' reluctance to lend to small businesses.

The largest Australian peer-to-peer lender, SocietyOne, has been backed with funding from mainstream banks including Westpac.

LendingClub's investors include Norwest Venture Partners, Foundation Capital, Morgenthaler Venture Partners and Canaan.

Morgan Stanley, Goldman Sachs & Co and Citigroup are the underwriters for the offering, the company said in a preliminary prospectus filed with the U.S Securities and Exchange Commission on Wednesday.

The company filed to raise US$500 million from the offering, but did not reveal how many shares it planned to sell or their expected price.

Copyright © iTnews.com.au . All rights reserved.
Tags:

Most Read Articles

Log In

Username:
Password:
|  Forgot your password?