SoFi stock falls after pricing $1.5 billion share offering

Published 30/07/2025, 12:08
© Reuters.

Investing.com -- SoFi Technologies (NASDAQ:SOFI) stock declined 7% Wednesday morning after the fintech company priced its previously announced public offering of common stock at $20.85 per share, below Tuesday’s closing price of $22.40.

The company is selling 71,942,450 shares to raise approximately $1.5 billion in gross proceeds, before accounting for underwriting discounts, commissions, and offering expenses. SoFi has also granted underwriters a 30-day option to purchase up to an additional 10,791,367 shares at the same public offering price.

The stock offering, which is expected to close on July 31, represents significant dilution for existing shareholders, triggering the negative market reaction. The pricing at $20.85 represents a 7% discount to Tuesday’s closing price.

SoFi stated that it intends to use the net proceeds from the offering for "general corporate purposes," which may include working capital and other business opportunities, though specific allocations were not detailed in the announcement.

The digital financial services platform has been expanding its product offerings and customer base in recent quarters, with this capital raise potentially supporting further growth initiatives.

The offering comes as SoFi continues its transition from a student loan refinancing company to a full-service digital bank following its acquisition of a national bank charter in 2022.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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