SoFi will go public on June 1 following the SPAC merger
Online FinTech start-up Social Finance, also known as SoFi, is expected to go public on June 1 following a merger on Friday May 28 with a Special Purpose Acquisition Company (SPAC) known as name of Social Capital Hedosophia Holdings V.
The merger creates a new FinTech called SoFi Technologies, which is expected to start trading on the Nasdaq next week, according to a company. Press release.
SoFi raised approximately $ 2.4 billion in cash from the transaction “to fuel growth, market expansion and the development of new product offerings,” the statement said.
Shareholders approved the merger on Thursday, May 27. CEO Anthony Noto and the SoFi management team will lead the combined company.
“Today marks an important milestone on our journey towards providing an ecosystem of products, rewards and benefits for members working together to help our members make their money well,” Noto said in the statement. hurry.
“At SoFi, we are all honored to reach this important milestone on our journey towards building a generational business, and we are grateful to the countless individuals who have helped advance our mission of empowering everyone. achieve financial independence to achieve its ambitions. ”
SoFi first announced the merger with Social Capital in January in an $ 8.6 billion deal. It also acquired Golden Pacific Community Bank for $ 22.3 million in early March.
As PYMNTS reported in March, SoFi has decided to go against Wall Street tradition by providing an easier way for amateur investors to buy shares in publicly traded companies. These stocks are normally reserved for institutional investors or people who boast of high net worth, leaving retail investors to pay significantly higher prices once these stocks start trading.