SoFi stock demonstrated a rise in its stock price after going public via an IPO by merging with Social Capital Hedosophia Corp V.
SoFi started its day in the form of a public company on Tuesday, so the first day of June was its debut. It proceeded to go public by integrating with Social Capital Hedosophia Corp V (NYSE: IPOE), which is run by Chamath Palihapitiya. SoFi is now listed by Nasdaq as a part of the SPAC deal. SoFi stock experienced a rise.
SoFi provides cryptocurrency and stock trading platforms with a mortgage and personal loans and some services related to wealth management. The firm was founded in 2011, and in the private market, it was valued at around $5.7 billion.
Moreover, in one of the statements given by SoFi, it was stated that they had raised approx $2.4 billion, which came through transactions. With the help of this money, they have decided to grow and expand their market. Also, by using this money, they want to produce new products.
The company is now valued at around $8.65 billion. It is now hoped that the deal will somehow provide cash of around $2.4 billion, which includes $1.2 billion for PIPE along with cash worth $805 million to be held in one of the trust accounts of the integrated organization of Chamath Palihapitiya. The majority of shareholders gave votes and approved to affirm the SPAC deal.
SPACs, known as Special Purpose Acquisition Companies, gain money via shell companies to purchase a firm. It has become very popular since last year. This made both the companies make a deal and merge to grow.
For the special purpose vehicle of Chamath, the shares of the firm were earlier present under IPOE. Chamath’s shares closed up on Friday and were closed around $20.15, which is up 62% year.
In a specific post, the CEO of SoFi Mr. Anthony Noto appreciated and thanked the entire team. He also mentioned that their primary goal is to provide people the beneficiary tools for borrowing, spending, saving, earning, protecting, and even investing the money with the help of only one smartphone mobile application. It was also stated that their goal is bigger than just budgeting, saving, and investing.
As SoFi became a public company, they also said that they are expecting to strengthen the public market power to promote its growth. At the time of writing, in the pre-market, SoFi stock is at $ 23.45 (+3.53%).