Following hot on the heels of the Lending Club IPO last week comes another online lender going public. Last night, OnDeck Capital priced its IPO at $20/share which was above the expectations of $16 – $18 per share. At $20/share OnDeck raised about $200 million and was valued at around $1.3 billion.
This morning its shares began trading on the New York Stock Exchange under the symbol ONDK and like Lending Club it received a solid first day bump. Shares opened at $26.50 and traded up throughout the day, closing at $27.98 – a 39.9% increase over the IPO price.
While OnDeck is an online lender like Lending Club, the two companies have very different business models. OnDeck’s focus is purely on small business lending and they are not a true marketplace. They primarily fund their loans off their own balance sheet. Having said that, they do have the OnDeck Marketplace where institutional investors can purchase whole loans and that program continues to grow. When I had OnDeck CEO, Noah Breslow, on the Lend Academy Podcast back in June he said that he was seeing increased demand from investors and that there was a waiting list for investors looking to deploy capital on the OnDeck Marketplace.
Speaking of growth, OnDeck has been on a tear lately. According to their S-1 in the first nine months of this year they originated $788 million in loans, a 171% increase over the same period last year. Their total loan volume originated since inception stood at just over $1.7 billion as of September 30, 2014.
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During the week I share the latest p2p lending news on Twitter as it happens. Then every Saturday I take the most interesting news items and blog posts from the past week and share them here.
This was a week like no other I have experienced. The Lending Club IPO was front and center all week with the media covering virtually nothing else when it comes to this industry. If I thought the previous week had a lot of coverage this week was off the charts – my Google alerts picked up well over 500 stories. Also, LendAcademy.com saw its biggest week ever with traffic more than doubling over the previous week and the forum setting a new record.
I have sifted through the several hundred stories and share the most interesting ones below.
Can Lending Club IPO Pull An Alibaba (BABA)? from BidnessEtc – Comparing the Lending Club IPO to the largest IPO ever.
The Lending Club IPO is the Netscape moment for Fintech from Fintech for the Rest of Us – Putting the Lending Club IPO into historical perspective.
IPO Lending Club Pairs Investors And Loan Seekers from Investors Business Daily – A primer for readers not already aware of Lending Club.
LendingClub: The Path to IPO from EquityZen – A look at the returns of the early Lending Club investors.
Lending Club Set to Debut, and Industry Is Watching from The New York Times – On the eve of the IPO things were already looking good as Lending Club priced at $15/share.
Lending Club IPO: Finance Business Gets Tech-Stock Allure from The Wall Street Journal – Is Lending Club a finance or tech business? The WSJ points out that it is priced like a tech stock.
Lending Club banks 56% surge on debut from the Financial Times – Tracy Alloway was also on the floor of the NYSE on Thursday and filed this report as trading got under way. [click to continue…]