SoFi Shares Close Over 12% After Nasdaq Debut

SoFi shares rose Tuesday after the online finance company made its public debut.

SoFi, short for Social Finance, went public by merging with Social Capital Hedosophia Corp V, a blank check company run by venture capitalist Chamath Palihapitiya. The stock closed more than 12% higher at $ 22.65.

Special purpose acquisition companies, known as SPACs, raise money through a shell company to buy an existing company and have become increasingly popular in the last year.

The shares were previously traded under the ticker symbol IPOE for Palihapitiya’s special purpose vehicle. Shares of the Palihapitiya company closed at $ 20.15 on Friday, an increase of 62% to date.

Founded in 2011 with a focus on refinancing student loans for millennials, SoFi offers equity and cryptocurrency trading, personal and home loans, and wealth management services.

“We are the one-stop-shop for all your financial services needs on one platform,” CEO Anthony Noto told CNBC’s “TechCheck.” “A lot of people talked about expanding the product range, but only SoFi has done it on a mobile platform.”

SoFi was last valued at $ 5.7 billion in private markets. It has attracted funding from investors such as Peter Thiel, private equity firm Silver Lake and SoftBank, according to PitchBook.

– CNBC’s Kate Rooney contributed to this report.

Correction: Shares of the Palihapitiya company closed at $ 20.15 on Friday, up 62% so far this year. An earlier version incorrectly indicated the percentage.

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