Chamath Palihapitiya is looking to come back from the long weekend in a big way. On Tuesday, his Social Capital Hedosophia V (NYSE:IPOE) will close its reverse merger with SoFi. As a result, IPOE stock will disappear and SOFI stock will make its debut on the Nasdaq Exchange.
Importantly, this is a SPAC merger that investors have long been awaiting. It also comes at a time when blank-check companies are caught in regulatory crosshairs. For Palihapitiya and other SPAC bulls, how SoFi performs in its first few independent trading days could be key.
With that all in mind, here is what you need to know about SOFI stock now.
What to Know About SOFI Stock Today
- Social Capital Hedosophia is the fifth blank-check company from Chamath Palihapitiya. On Friday, the company announced it had closed its SPAC merger with SoFi.
- Shareholders approved this transaction on Thursday, May 27.
- Today, SOFI stock will begin trading independently on the Nasdaq and IPOE stock will stop trading.
- Warrants from the merger will start trading as SOFIW.
- As a result of the deal, SoFi now has $2.4 billion in cash. The fintech company plans to use this to help expand geographically, as well as build on its digital platform.
- Broadly, SoFi seeks to become a one-stop shop for its customers. This is because the company offers solutions for borrowing, saving, investing and more.
- Harvey Schwartz and Dick Costolo will also join the SoFi board of directors. Schwartz previously served in executive roles at Goldman Sachs (NYSE:GS). Costolo served as the CEO of Twitter (NYSE:TWTR).
- Current SoFi CEO Anthony Noto will remain in his position.
- Investors should note that SoFi shared its first-quarter results just last week. SoFi beat its own expectations, reporting revenue of $216 million.
- Importantly, this represents 151% year-over-year growth.
- SoFi also shared earnings before interest, taxes, depreciation and amortization (EBITDA) of $4.1 million.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Sarah Smith is the Editor of Today’s Market with InvestorPlace.com.
