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The online personal finance company SoFi goes public for $ 8, 65 billion deals

Social capital Hedosophia Holdings V,

the newest blank check firm from venture capitalist Chamath Palihapitiya

Existing SoFi shareholders will contribute 100% of their equity to the combined company. The shares of Social Capital Hedosophia V (ticker: IPOE) rose 58% to $ 702 to $ 1914 on Thursday following the announcement of the deal

The deal for SoFi, one of the best-known fintechs, is expected to close in the first quarter and requires the combined company to receive $ 2 billion in gross proceeds, which includes cash of 805 million USD held in the escrow account of Social Capital Hedosophia V following the IPO in October

Palihapitiya, founder and CEO of Social Capital Hedosophia V, is executing $ 1 billion in private investments in public equity, or PIPE, including investments of $ 950 million

BlackRock (BLK),

Altimeter Capital Management, Baron Capital Group, Coatue Management, Ontario’s permanent equity capital partner and retirement plan Palihapitiya and Hedosophia, a London-based venture capital company led by Ian Osborne, are also contributing $ 275 million, a statement said

“SoFi’s innovative membership platform has demystified financial services for millions of Americans and simplified the process for those looking to apply for credit, invest their money, get insurance, and refinance their debt, among many other tasks that were previously mysterious and unnecessary complicated, ”Palihapitiya said in a statement

Founded in 2011, SoFi is best known for its student loan platform, San Francisco-based fintech firm formerly known as Social Finance last raised $ 500 million in 2019 in a Series-H run by the Qatar Investment Authority SoFi investment round was valued at $ 4 billion at the time. Last year, fintech Galileo Financial Technologies acquired for $ 1.2 billion in cash and in shares SoFi also received conditional approval from the U.S. Office of the currency inspector for a national bank charter in October

The SoFi management team will remain and the company will continue to be led by CEO Anthony Noto We look forward to helping more people get their money right in the years to come, ”Noto said in the statement

Palihapitiya, a former

Facebook

(FB) Executive used these Special Purpose Acquisition Companies (SPACs) to buy multiple companies Palihapitiya’s first blanket check company, Social Capital Hedosophia, merged with Virgin Galactic (SPCE) in 2019 Its second SPAC, Social Capital Hedosophia II (IPOB), Agree to a $ 4 billion merger with Opendoor, a real estate startup, in September Its third blanket check firm,

Social Capital Hedosophia Holdings Corp.

III, agreed to a $ 3.7 billion purchase from Clover Health in October Clover will trade on the Nasdaq on Friday

Connaught and

Credit Suisse

(CS) provided financial advice to Social Capital Hedosophia, while Skadden, Arps, Slate and Meagher & Flom acted as legal counsel to Citi (C) and

Goldman Sachs

(GS) acted as financial advisor to SoFi, while Wachtell, Lipton, Rosen & Katz and Goodwin Procter served as legal counsel

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SoFi

World News – USA – SoFi goes public in $ 8, 65 billion blank check deal

Source: https://www.barrons.com/articles/sofi-will-go-public-in-8-65-billion-blank-check-deal-51610058710