GreenSky Opens Below IPO Price After Raising $874 Million

(Bloomberg) -- GreenSky Inc. shares began trading below the $23-a-share initial public offering price after the financial technology company raised $874 million in an expand share sale.

Shares of the company opened at $22.15 Wednesday. They rose to $23.03 at 12:02 p.m. in New York trading, giving the company a market value of $4.39 billion.

The company sold 38 million shares -- almost 4 million more than previously planned -- after marketing them at a range of $21 to $23 each, according to a statement Thursday.

GreenSky made its name as a lender to help people pay for home improvement projects and expanded into helping fund elective health-care procedures, according the most recent IPO filing. The company connects customers, merchants and banks through its platform, collecting a service fee from lenders and a fee every time a seller of goods or services receives a payment.

Online lenders haven’t been much loved by investors. LendingClub Corp.’s stock has fallen more than 75 percent since its 2014 IPO after after its founder-CEO stepped down amid an internal probe into a botched loan sale. On Deck Capital Inc. has tumbled more than 70 percent since it listed the same year.

Atlanta-based GreenSky had $326 million in revenue last year, up from $264 million in 2016. About 83 percent of its revenue comes from transaction fees. GreenSky’s net income was $139 million in 2017, compared with $124 million the previous year.

Private equity firm TPG and Pacific Investment Management Co., the Newport Beach, California-based investment manager, will hold stakes giving them voting power equivalent to about 5 percent and 7 percent of its outstanding shares, respectively, after the offering, according to the filing.

Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley are leading the offering. The shares are trading on the Nasdaq Global Select Market under the symbol GSKY.

To contact the reporter on this story: Alex Barinka in San Francisco at abarinka2@bloomberg.net

To contact the editors responsible for this story: Elizabeth Fournier at efournier5@bloomberg.net, Michael Hytha, Matthew Monks

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