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SoFi Raises $1.5 Billion in Stock Offering as Shareholders Brace for Dilution

MarketDash Editorial Team
3 days ago
SoFi Technologies priced a public offering of 54.5 million shares at $27.50 each, aiming to raise around $1.5 billion to strengthen its capital position and fund growth opportunities, but investors sent shares down over 7% on dilution concerns.

SoFi Technologies Inc. (SOFI) shares took a hit Friday morning after the fintech company announced it had priced a sizable stock offering that will add 54.5 million new shares to the market at $27.50 apiece.

The Offering Breakdown

The math here is straightforward: 54.5 million shares times $27.50 equals roughly $1.5 billion in gross proceeds before accounting for underwriting fees and other expenses that come with raising capital. That's a meaningful chunk of money, even for a company that's been growing as quickly as SoFi.

There's also the standard greenshoe provision, which gives underwriters a 30-day window to purchase up to 8.2 million additional shares at the same offering price, minus underwriting discounts and commissions. If they exercise that option fully, the total raise could climb even higher.

The offering is slated to close on December 8, 2025, assuming all the usual regulatory boxes get checked.

What's the Money For?

According to SoFi, the net proceeds will strengthen the company's capital position and provide more financial flexibility. Management says the funds will enable more efficient capital management while supporting growth initiatives and new business opportunities. It's the kind of strategic rationale you'd expect from a company that's still in expansion mode.

For context, SoFi reported approximately $3.25 billion in total cash and cash equivalents as of September 30, so this offering represents a significant boost to the company's liquidity cushion.

Strong Earnings, Then This

The timing is interesting because SoFi has actually been performing well operationally. Back in October, the company reported third-quarter revenue of $949.63 million, comfortably beating analyst estimates of $886.17 million. Adjusted earnings came in at 11 cents per share, topping the 8 cents per share that analysts had penciled in.

Management also raised its full-year 2025 guidance, bumping revenue expectations from $3.38 billion to $3.54 billion (versus estimates of $3.43 billion), and lifting the adjusted earnings forecast from 31 cents per share to 37 cents per share, well above the consensus estimate of 31 cents per share.

But strong fundamentals don't erase dilution concerns. When you're adding tens of millions of new shares to the float, existing shareholders see their ownership stakes shrink proportionally, which explains the market's negative reaction.

Price Action: SoFi Technologies shares were trading down 7.60% at $27.35 during premarket trading on Friday.

Back to News

SoFi Raises $1.5 Billion in Stock Offering as Shareholders Brace for Dilution

MarketDash Editorial Team
3 days ago
SoFi Technologies priced a public offering of 54.5 million shares at $27.50 each, aiming to raise around $1.5 billion to strengthen its capital position and fund growth opportunities, but investors sent shares down over 7% on dilution concerns.

SoFi Technologies Inc. (SOFI) shares took a hit Friday morning after the fintech company announced it had priced a sizable stock offering that will add 54.5 million new shares to the market at $27.50 apiece.

The Offering Breakdown

The math here is straightforward: 54.5 million shares times $27.50 equals roughly $1.5 billion in gross proceeds before accounting for underwriting fees and other expenses that come with raising capital. That's a meaningful chunk of money, even for a company that's been growing as quickly as SoFi.

There's also the standard greenshoe provision, which gives underwriters a 30-day window to purchase up to 8.2 million additional shares at the same offering price, minus underwriting discounts and commissions. If they exercise that option fully, the total raise could climb even higher.

The offering is slated to close on December 8, 2025, assuming all the usual regulatory boxes get checked.

What's the Money For?

According to SoFi, the net proceeds will strengthen the company's capital position and provide more financial flexibility. Management says the funds will enable more efficient capital management while supporting growth initiatives and new business opportunities. It's the kind of strategic rationale you'd expect from a company that's still in expansion mode.

For context, SoFi reported approximately $3.25 billion in total cash and cash equivalents as of September 30, so this offering represents a significant boost to the company's liquidity cushion.

Strong Earnings, Then This

The timing is interesting because SoFi has actually been performing well operationally. Back in October, the company reported third-quarter revenue of $949.63 million, comfortably beating analyst estimates of $886.17 million. Adjusted earnings came in at 11 cents per share, topping the 8 cents per share that analysts had penciled in.

Management also raised its full-year 2025 guidance, bumping revenue expectations from $3.38 billion to $3.54 billion (versus estimates of $3.43 billion), and lifting the adjusted earnings forecast from 31 cents per share to 37 cents per share, well above the consensus estimate of 31 cents per share.

But strong fundamentals don't erase dilution concerns. When you're adding tens of millions of new shares to the float, existing shareholders see their ownership stakes shrink proportionally, which explains the market's negative reaction.

Price Action: SoFi Technologies shares were trading down 7.60% at $27.35 during premarket trading on Friday.