SoFi tumbles after announcing $1.5 billion stock offering
SoFi Technologies slid 8% in premarket trading on Wednesday after it announced plans to sell $1.5 billion of stock.
The company is reportedly planning to offer its shares for $20.85 to $21.50 apiece, per Bloomberg, which would be a discount of up to 6.9% from Tuesday’s closing price of $22.40.
From the press release:
“In connection with the offering, SoFi expects to grant the underwriter a 30-day option to purchase up to an additional 15% of the shares of common stock offered in the offering. All of the shares of common stock in the offering will be sold by SoFi. SoFi intends to use the net proceeds from the offering for general corporate purposes, including working capital and other business opportunities.”
The news means that SoFi shares are giving up their gains from Tuesday, when the company posted better-than-expected second-quarter earnings and hiked its full-year guidance for revenue.
From the press release:
“In connection with the offering, SoFi expects to grant the underwriter a 30-day option to purchase up to an additional 15% of the shares of common stock offered in the offering. All of the shares of common stock in the offering will be sold by SoFi. SoFi intends to use the net proceeds from the offering for general corporate purposes, including working capital and other business opportunities.”
The news means that SoFi shares are giving up their gains from Tuesday, when the company posted better-than-expected second-quarter earnings and hiked its full-year guidance for revenue.
