Online FinTech startup Social Finance, otherwise known as SoFi, is expected to go public June 1 following a merger Friday (May 28) with a special purpose acquisition company (SPAC) known as Social Capital Hedosophia Holdings V.
The merger creates a new FinTech called SoFi Technologies, expected to begin trading on the Nasdaq next week, according to a company news release.
SoFi raised roughly $2.4 billion in cash proceeds from the transaction “to fuel growth, market expansion and development of new product offerings,” the release said.
Shareholders approved the merger Thursday (May 27). CEO Anthony Noto and SoFi’s management team will lead the combined company.
“Today marks an important step on our path toward providing an ecosystem of products, rewards and membership benefits all working together to help our members get their money right,” Noto said in the news release.
“All of us at SoFi are humbled to reach this significant milestone in our journey of building a generational company, and we are grateful for the countless individuals who have contributed to advancing our mission of empowering everyone to achieve financial independence to realize their ambitions.”
SoFi first announced the merger with Social Capital in January as part of an $8.6 billion deal. It also acquired community bank Golden Pacific for $22.3 million in early March.
As PYMNTS reported in March, SoFi decided to go against Wall Street tradition by giving amateur investors an easier way to purchase shares in companies going public. These shares are normally reserved for institutional investors or people who boast a high net worth, leaving retail investors paying substantially higher prices once those shares actually begin trading.