P2P lending startup Lending Club’s IPO last Thursday was reported to be worth at least $865 million, but it turns out to be even bigger, Silicon Beat reported. The company said on Tuesday (Dec. 16) that it had sold additional to raise its total IPO earnings to just more than $1 billion.
The San Francisco-based company 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 U.S. IPO of the year.
The company’s shares were priced at $15, but the stock shot up by 56 percent on the first day’s trading to give Lending Club a valuation of $8.5 billion, higher than all but 14 U.S. banks. The company’s share price has risen even more in the past week, pushing its total valuation above $10 billion.
Before the IPO, Lending Club executives said they planned to use the IPO funds to acquire other financial tech startups and expand internationally and into the 24 states where the company was previously out of bounds for investors because of state regulations.
As a public company, Lending Club is now governed by federal regulators, who cleared the company for lending 2008. Expanding into the additional 24 states where it is now cleared to operate will take three to six months, according to COO Scott Sanborn.