SoFi Technologies began trading Tuesday in one of the more closely watched initial public offerings this year that came to market by merging with a special purpose acquisition company. The SoFi IPO raised $2.4 billion.
SoFi stock climbed 12.4%, closing at 22.65 on the stock market today. SoFi was valued at $8.65 billion.
The online financial technology company describes itself as a "one-stop shop for members to borrow, save, spend, invest and protect their money." It initially focused on student loan refinancing and recently entered the auto loan field. It targets a younger demographic.
Initially named Social Finance, it was known as SoFi. Now, as a newly minted public company, its new name is SoFi Technologies.
SoFi IPO SPAC Merger
The SoFi SPAC was brought to market via its merger with Social Capital Hedosophia Holdings V, a blank-check company founded by former Facebook executive and well-known SPAC investor Chamath Palihapitiya.
SoFi also offers stock and cryptocurrency trading, personal and mortgage loans, and wealth management services. It has about 2.3 million members. That's more than double the year-ago period and up 23% from the previous quarter.
SoFi recently announced it will offer its customers the ability to invest in initial public offerings before trading begins in those companies. It will be available for members with at least $3,000 of cash and settled assets in their SoFi accounts. Organizers traditionally reserve IPO investing for large institutional investors or individuals with ultrahigh net worth.
SoFi Financial Performance
SoFi reported first-quarter results two weeks ago. It reported adjusted net revenue of $216 million. That was above SoFi's guidance of $190 million to $195 million. It showed adjusted net income of $4.1 million.
In addition, the company reiterated its full-year 2021 guidance, forecasting adjusted net revenue of $980 million, representing growth of 58% over 2020, with adjusted income of $27 million.
"As a leader and innovator in the financial technology space, SoFi has the opportunity to completely transform the consumer financial services industry with its digital-first ecosystem of offerings," said Palihapitiya, the chief executive of Social Capital Hedosophia, in written remarks with the SoFi IPO announcement.
SoFi is also the naming rights partner of SoFi Stadium, home of the Los Angeles Chargers and the Los Angeles Rams.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
