Lending Club Picks N.Y.S.E. as Home for Its I.P.O.

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Renaud Laplanche, chief executive of Lending Club.Credit Peter DaSilva for The New York Times

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When Lending Club finally begins life as a publicly traded company, the giant of the peer-to-peer lending industry will do so on the Big Board, the same exchange where many of the banks it has sought to displace now trade.

In an updated prospectus filed on Monday, the company disclosed that it planned to list shares from its forthcoming initial public offering on the New York Stock Exchange under the ticker symbol “LC.”

Perhaps more intriguing, Lending Club also disclosed that it intended to reserve some of the shares to be sold in the I.P.O. for investors who use the service to lend money directly to borrowers.

The disclosures are the latest by the peer-to-peer loan market place as it moves toward its highly anticipated stock sale. Many of the most highly promoted start-ups today focus on consumer services — think Uber and car rides or Airbnb and home rentals — but Lending Club has drawn attention for the seemingly more mundane business of connecting would-be borrowers and lenders using the Web.

It is a business model that has increasingly drawn the attention of big financial firms, many of whom have poured money into the company’s loan marketplace. Supporters of the peer-to-peer model, including huge institutions on Wall Street and in Silicon Valley, argue that the business provides an alternative to traditional bank loans and high-interest credit cards.

But as more hedge funds and investment managers flock to the industry, critics have expressed concern that the initial source of loans, individual investors, are being crowded out. Lending Club sought to dispel some of those worries in its amended prospectus, disclosing that only 30 percent of loans made through its platform were from institutional investors in the quarter that ended June 30. Twenty-four percent of loans were made by self-managed individual investors, while 46 percent were made by individuals through special investment vehicles or managed accounts.

Morgan Stanley and Goldman Sachs are leading the company’s I.P.O.

Lending Club, Middleman for Small Loans, Plans Stock Offering

Lending Club, Middleman for Small Loans, Plans Stock Offering

Lending Club, which has political heavyweights on its board and has raised money from the likes of Google, could rank among the 10 biggest initial public offerings of an Internet company.