GreenSky Opens Below IPO Price After Raising $874 Million

  • Online lending platform increased listing by 4 million shares
  • Pimco, TPG keep GreenSky stakes with 12% combined voting power

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.

    Before it's here, it's on the Bloomberg Terminal. LEARN MORE