By Angela Chen
Web-based lender OnDeck Capital boosted the amount it intends to
raise in its initial public offering to $207 million as it set the
deal's estimated terms.
The fast-growing, but unprofitable, company said it expects to
offer 10 million shares at $16 to $18 a share and will give
underwriters the right to purchase up to an additional 1.5 million
shares.
The small-business lender filed for an IPO last month, amid
strong investor interest in nonbank lending companies. The company
had previously guided for a $150 million offering.
OnDeck uses proprietary software and "big data" to evaluate
credit risk, while it collects from borrowers with
electronic-payment technology. Backers include Google Ventures and
PayPal co-founder Peter Thiel.
OnDeck has been growing quickly, but is still losing money. For
the six months ended June 30, OnDeck Capital's revenue rose $20
million to $64.5 million, but its loss widened to $14.4 million
from $13.7 million.
The Wall Street Journal reported in August that OnDeck's planned
IPO could value the business at about $1.5 billion. Underwriters
for OnDeck's planned IPO include Morgan Stanley and Merrill
Lynch.
The company plans to list its shares on the New York Stock
Exchange under the symbol ONDK.
Write to Angela Chen at angela.chen@dowjones.com
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