According to reports from the Financial Times on Sunday, the Lending Club, which is considered to be the biggest online marketplace with direct connections with investors and borrowers, has made a decision regarding its primary public offering and chose the New York Stock Exchange.
The Financial Times, which stated unnamed sources that are familiar with their planned listing, made reports, too, saying that the IPO of the company based in San Francisco is expected to have its launching before this year ends, citing its sources.
NYSE and Lending Club did not return phone and emailed requests immediately for comment.
Lending Club, too, which got involved in the facilitation of over five billion dollars worth of loans ever since it got launched during the year 2007, filed with regulators from the US for a common stock IPO on the 27th day of August. The said company filed for the raising of 500 million dollars from their offering. However, such did not say the number of shares it is planning to sell.
Citigroup, Morgan Stanley and Goldman Sachs are the said offering’s underwriters according to the statement that Lending Club mentioned on the 27th day of August during the preliminary filing.
P2P or peer-to-peer lending is allowing its investors to lend to businesses and individuals directly and uses online platforms that are affordable to have banks cut out. The lending industry of P2P rose to reach prominence during the crisis in global financing, bringing a hole that has been left by the cash-strapped banks’ reluctance to give loans to businesses that are not that big.
Lawrence Summers, the former U.S. treasury secretary, and John Mack, who is the previous chief executive of Morgan Stanley, are on the board of Lending Club. Renaud Laplanche, the previous head of the product management unit of Oracle Corp, is the person heading the company.