Yesterday, Anthony Noto, CEO of SoFi, rang the opening bell on Nasdaq as his company celebrated their first day as a public company.
SoFi merged with a SPAC run by Chamath Palihapitiya called Social Capital Hedosophia V Corp. that closed its last day of trading on the New York Stock Exchange on Friday at $20.15. After completion of the merger the combined company’s shares were transferred to the Nasdaq under the ticker SOFI and the stock closed trading Tuesday at $22.65, a gain of 12%.
At its closing price yesterday the company is now worth $19.6 billion, based on the number of outstanding shares, a substantial increase from the $5.7 billion it was valued at during its last private funding round last year.
SoFi raised $2.4 billion in cash as part of the merger deal and the company said it will use the proceeds to “fuel growth, expand its markets and develop new products.”
In a message to its members yesterday Noto said:
Getting your money right requires more than a financial services provider, it requires a partner—a partner that is there for every major financial decision in our member’s life and all of the days in between. A new generation—raised online, made resilient by financial crises, but fundamentally optimistic about their futures—deserve a lifelong financial partner that can help them realize their aspirations… And as we become a publicly traded company, we look forward to leveraging the power of the public markets to fuel accelerated growth on behalf of our members.
The company has come a long way in the ten years since it launched. The first article I published on SoFi was back in 2012 when I interviewed co-founder Dan Macklin about what they were doing in student loans. Back then they were a quasi peer to peer lender with alumni providing financing primarily for recent graduates to refinance their student loans. [Read more…]