TLDR
- SoFi Technologies reveals plans for $1.5 billion stock offering with Goldman Sachs leading underwriters
- Stock price dropped nearly 6% in extended trading following the announcement Thursday evening
- Shares have surged 92% year-to-date and increased sixfold since late 2022
- Company will use funds for capital enhancement, growth initiatives, and operational flexibility
- SoFi may be added to S&P 500 index during December’s quarterly rebalancing
SoFi Technologies dropped almost 6% in after-hours trading Thursday. The decline came after the fintech announced a $1.5 billion common stock offering.
SoFi Technologies, Inc., SOFI
Shares closed regular trading at $29.60, up 1.8%. After the announcement, the stock fell below $28.
The offering represents a strategic capital raise during a period of strong stock performance. SoFi’s shares have climbed 92% in 2025. Over 12 months, the stock is up 89%.
Goldman Sachs will serve as lead underwriter for the offering. BofA Securities, Citigroup Global Markets, Deutsche Bank Securities, and Mizuho Securities are co-managers.
How SoFi Plans to Use the Capital
The San Francisco-based company filed regulatory documents detailing its plans. Proceeds will go toward general corporate purposes.
This includes enhancing the capital position and improving financial flexibility. SoFi also intends to fund growth opportunities and optimize capital management.
The stock offering dilutes existing shareholders’ stakes. This typically causes share prices to decline when companies announce new equity sales.
Despite the after-hours drop, SoFi’s recent performance has been strong. The stock has increased more than sixfold since the end of 2022. Market capitalization has nearly doubled this year alone.
Recent Financial Performance Supports Growth Strategy
Third-quarter results showed momentum across the business. Revenue grew 38% year-over-year to $961.6 million.
Net income more than doubled to $139.4 million compared to the prior year. The company reported $3.25 billion in cash and equivalents.
These results provide context for the capital raise timing. SoFi is tapping markets from a position of strength rather than necessity.
The company could soon join the S&P 500 index. KBW analyst Shreyank Gandhi listed SoFi among candidates for December’s quarterly rebalancing.
An index addition would be announced Friday afternoon. Inclusion would require index funds to purchase SoFi shares automatically.
What This Means for Investors
The $1.5 billion offering gives SoFi flexibility to pursue opportunities. The company operates in competitive digital banking and lending markets.
Management appears to be capitalizing on favorable market conditions. The stock’s strong run has created an opportunity to raise capital at attractive prices.
Dilution concerns pushed shares lower initially. However, the use of proceeds could support long-term growth.
Trading in the coming days will show how investors digest the news. The underwriters will work to complete pricing and finalize the sale.
SoFi’s growth trajectory has attracted attention throughout 2025. The stock offering tests whether momentum can continue through temporary dilution.
The post SoFi Stock: Fintech Sells $1.5 Billion in Shares After Epic Rally appeared first on Blockonomi.
Source: https://blockonomi.com/sofi-stock-fintech-sells-1-5-billion-in-shares-after-epic-rally/