SoFi stock falls after announcing $1.5B public offering of common stock
Investing.com -- SoFi Technologies (NASDAQ:SOFI) stock fell 5% in after-hours trading Thursday after the company announced a $1.5 billion public offering of common stock.
The fintech company said all shares in the offering will be sold by SoFi, and it plans to grant the underwriter a 30-day option to purchase up to an additional 15% of the shares offered.
SoFi intends to use the net proceeds from the offering for general corporate purposes, including enhancing its capital position, increasing optionality, enabling more efficient capital management, and funding incremental growth and business opportunities.
The announcement comes as SoFi continues to expand its financial services platform, which includes lending, banking, and investment products. The company has been working to strengthen its financial position amid a competitive landscape in the digital banking sector.
This capital raise could provide SoFi with additional resources to pursue its growth strategy, though the stock issuance may lead to dilution for existing shareholders, which likely contributed to the negative market reaction in after-hours trading.
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