Social Finance, which goes by the name SoFi, moved closer to an initial public offering via its merger with a special purpose acquisition company, as shareholders voted to approve the deal by a wide margin, it was announced Friday. The SoFi SPAC IPO begins trading on Tuesday.
XThe vote, by shareholders of Social Capital Hedosophia Holdings V (IPOE), took place Thursday. SoFi has positioned itself as a one-stop shop for financial services that target a younger demographic. It initially focused on student loan refinancing and recently entered the auto loan field.
"We are pleased to share that the merger was approved by an overwhelming majority," said a statement posted on Twitter by Social Capital Hedosophia's investor relations unit.
As a result, shares of Social Capital Hedosophia will exchange 1-for-1 for SoFi shares when trading begins on the Nasdaq under the ticker SOFI.
Social Capital Hedosophia, a blank-check company founded by former Facebook executive Chamath Palihapitiya, previously valued SoFi at $8.7 billion. Its new name will be SoFi Technologies.
SoFi is also the lead sponsor of the newly built mega complex that is the home field of the Los Angeles Rams, called SoFi Stadium.
Investing At The IPO Price
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.
Online trading app Robinhood is also reportedly working on a plan to offer IPO investing.
SoFi also offers stock and cryptocurrency trading, personal and mortgage loans, and wealth management services. It has more than 2.28 million members. That's more than double the year-ago period and up 23% from the previous quarter.
SoFi SPAC IPO Filing
SoFi reported first-quarter results last week. 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.
Shares of Social Capital Hedosophia climbed 1.8%, closing at 20.15 on the stock market today.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
YOU MAY ALSO LIKE:
Get Ready For A Flood Of New Tech Companies, Courtesy Of SPACs
SPAC Isn't A Four-Letter Word With Investors Anymore
Roblox IPO Soars As Trading Begins For Online Gaming Company
Find Winning Stocks With MarketSmith Pattern Recognition & Custom Screens
