Social Capital Hedosophia (NYSE:IPOE) stock is on the rise Monday following news that it’s making progress on its special purpose acquisition company (SPAC) merger with student loan refinancing company SoFi.
For those that are unaware, Social Capital Hedosophia is a SPAC company that will merge with SoFi to take it public. This will have shares of IPOE changing over to the new SOFI stock ticker once the deal is complete.
SoFi announced via its Investor Relations Twitter (NYSE:TWTR) account that the SPAC merger is now effective with the U.S. Securities and Exchange Commission (SEC). That means it just needs a shareholder vote before it can close the deal.
SoFi says that a shareholder vote is set to take place on May 27. The company says it intends to close the merger deal with Social Capital Hedosophia on the following day. That should result in shares of SOFI stock starting to trade on the first of June.
InvestorPlace’s own Chris Markoch believes that IPOE is a solid investment. He expects the company to perform better once it switches over to SoFi. That comes from the belief that fintech companies are set to gain traction over traditional banking options.
News of the shareholder vote date has increased interest in IPOE stock ahead of the merger. As a result, shares are seeing heavy trading today. We’re still in the early morning and already some 2.2 million shares have changed hands. For some perspective, the stock’s daily average trading volume is about double that at 4.5 million shares.
We’re also seeing IPOE stock heading higher today. As of Monday morning, shares are up slightly. They are also up roughly 35.7% since the start of the year.
Investors that want to learn more about other companies going public should stick around.
InvestorPlace has been covering quite a few initial public offerings (IPO) lately. While not the same as a SPAC, they are both ways for companies to go public. A few recent examples include iPower, Honest Company (NASDAQ:HNST), Alfi (NASDAQ:ALF).
More IPO News
- iPower IPO: 18 Things for Potential IPW Stock Investors to Know
- Honest Company IPO: When Is Honest Company Going Public? What Is the HNST Stock Price Range?
- Alfi IPO: 14 Things for Potential ALF Stock Investors to Know Now That Shares Are Trading
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.