SoFi Technologies Inc. (SOFI) shares are set to open sharply lower on Wednesday, plummeting 6.12% in pre-market trading. This significant drop comes on the heels of the company's announcement of a $1.5 billion public offering of common stock, overshadowing its strong second-quarter earnings report released the previous day.
The fintech company priced its public offering at $20.85 per share, representing a discount of about 6.9% from Tuesday's closing price of $22.40. SoFi plans to use the proceeds from this offering for general corporate purposes, including working capital and exploring new business opportunities. Goldman Sachs & Co. LLC is leading the offering, which includes an option for underwriters to purchase an additional 15% of shares.
This stock offering announcement has eclipsed SoFi's impressive Q2 results reported on Tuesday. The company had exceeded Wall Street expectations with adjusted earnings of $0.08 per share and revenue of $858 million, marking a 44% year-over-year growth. SoFi also raised its full-year 2025 guidance, projecting adjusted net revenue of $3.375 billion and earnings per share of $0.31. Despite these positive financials, investors seem to be focusing on the potential dilution of existing shares due to the new stock offering, leading to the pre-market decline.
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