SoFi Technologies (SOFI) Stock: Falls 7% After $1.5 Billion Stock Offering Announcement
TLDR
- SoFi announced a $1.5 billion public offering of common stock priced at $20.85 per share
- Stock dropped over 7% in after-hours trading to around $20.82, erasing earlier 6.6% gains
- Goldman Sachs serves as underwriter for the offering with 15% overallotment option
- Proceeds will fund general corporate purposes including working capital and business opportunities
- Stock had gained 45% year-to-date before the offering announcement
SoFi Technologies announced a major stock offering that sent shares tumbling in after-hours trading Tuesday. The fintech company plans to sell $1.5 billion worth of common stock.
SoFi announces a $1.5B mixed-shelf offering after the bell.
What does this mean? Basically, they reserve the right to offer $1.5B of stock, which at $21/share would be 71M shares, on the open market.
Higher the price of the stock when they dilute, less shares that… pic.twitter.com/M9Ul1OHoNn
— amit (@amitisinvesting) July 29, 2025
The offering comes just hours after SoFi stock rallied 6.6% during regular trading. Shares closed at $22.40 before the announcement hit the market.
Goldman Sachs will underwrite the public offering priced at $20.85 per share. The investment bank also has an option to purchase an additional 15% of shares.
SoFi stock dropped more than 7% to around $20.82 in extended trading. The decline wiped out the day’s earlier gains and then some.
The company plans to use proceeds for general corporate purposes. This includes working capital and other business opportunities that may arise.
Stock Performance Before Announcement
SoFi had been on a strong run leading up to the offering news. The stock gained roughly 45% year-to-date through Tuesday’s close.
The recent rally came after SoFi posted strong earnings results. The company beat Wall Street estimates and raised its 2025 revenue outlook.
SoFi expanded its earnings by 1,000% on an annual basis. The growth helped fuel investor enthusiasm for the stock.
The company also saw increased demand for its loan products. This contributed to the positive financial performance.
SoFi maintains a Relative Strength rating of 97 according to IBD MarketSurge. This puts it among the top-performing stocks in the market.
Market Reaction and Trading Details
The stock offering announcement created immediate downward pressure on shares. Investors typically worry about dilution when companies issue new stock.
SoFi’s 52-week high stands at $25.11 while the low sits at $6.01. The current market cap reaches approximately $24.76 billion.
The stock trades at a price-to-earnings ratio of 44.8. SoFi does not pay a dividend to shareholders.
After-hours trading showed continued weakness with shares falling to around $20.66. This represents a substantial drop from the day’s closing price.
The offering size of $1.5 billion represents a large capital raise for the company. SoFi will use these funds to support future growth initiatives.
Goldman Sachs’ involvement as lead underwriter adds credibility to the offering. The investment bank’s 15% overallotment option could increase the total raise.
The timing of the announcement came after positive earnings momentum. SoFi had been riding a wave of strong financial results and increased loan demand.
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