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Early Investors to Make Big Gains on Lending Club IPO

Early Investors to Make Big Gains on Lending Club IPO

High profile Wall Street names stand to make tens of millions of dollars when Lending Club lists on the New York Stock Exchange next week. The peer-to-peer lender, which uses an online platform to directly match borrowers with lenders, is seeking to raise at least $650m and is offering shares at $10 to $12 apiece, according to recently released price guidance for its much-awaited initial public offering. The company will be valued at about $4bn at the mid point of the range. The IPO marks an important moment for the nascent “p2p” or marketplace lending industry, which has grown from a handful of start-ups seeking to disrupt major banks to dozens of fully-fledged companies that can command the attention of Wall Street and its network of professional bankers and investors.

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