Lending Club IPO rises to $1 billion

Lending Club, which went public last week in the largest offering from a California company this year, announced on Tuesday it had sold additional shares to raise its total IPO earnings to just more than $1 billion.

The San Francisco-based startup exercised its option to sell an additional 8.7 million shares, which added another $130 million to its IPO earnings and makes Lending Club the 17th-largest IPO of the year in the U.S. Shares were priced at $15.

Lending Club connects individual and institutional lenders with people who need money, using data and Web tools to provide the lender with an instant risk assessment. Much in the way eBay serves buyers and sellers, Lending Club offers a marketplace rather than making loans directly as a bank does. It has facilitated $6.2 billion in loans since 2007.

The company took Wall Street by storm on Thursday, with shares soaring 65 percent when trading began on the New York Stock Exchange in the first public offering from a so-called peer-to-peer lending startup.

Shares of Lending Club closed up 4 percent to $26 on Tuesday, pushing the company’s market value to $9.39 billion.

Photo: Renaud Laplanche, third from right, Founder & CEO of Lending Club, embraces company CFO Carrie Dolan during opening bell ceremonies of the New York Stock Exchange, to mark Lending Club’s IPO, Thursday, Dec. 11, 2014. AP Photo/Richard Drew.

 

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