Wall Street bets on a peer-to-peer lending company: LendingClub’s IPO

Wall Street bets on a peer-to-peer lending company. LendingClub’s IPO will be priced before trading starts on Thursday.

The firm, the largest of its kind, has enabled $6 billion of loans since 2007, and expects to raise as much as $929 million.

LendingClub, a marketplace for personal and small-business loans, has already upped its price range this week, a signal of strong investor interest. The San Francisco-based company expects top price shares between $12 and $14, up from $10 to $12, valuing the currently unprofitable loan matchmaker at close to $6.5 billion on a fully diluted basis.

The largest of the so-called peer-to-peer loan startups, LendingClub has helped match lenders and borrowers on $6 billion worth of debt since it launched in 2007. The company takes a fee on each transaction but doesn’t lend its own capital. Revenue in the first nine months of 2014 totaled $133.8 million, up 142% from the same period last year. But expenses grew quickly, too, turning a 2013 profit of $4.5 million into a net loss of $23.9 million this year.



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