SoFi Technologies Falls in Stock Market Debut

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SoFi Technologies,  (SOFI) – Get Report the consumer-focused financial-services platform, began its first day as a public company Tuesday on a up note.

Shares of the San Francisco company at last check were up 6% to $21.36.

SoFi started trading after Social Finance and Social Capital Hedosophia Holdings, a special purpose acquisition company founded by the venture-capital investor Chamath Palihapitiya, completed their plan last week to take SoFi public.

SoFi said in a statement that it raised about $2.4 billion from the transaction to fuel growth, expand its markets and develop new products.

The company offers consumers tools and advice for borrowing, saving, spending and investing.

Social Capital shareholders approved the transaction at a general meeting. Chief Executive Anthony Noto and SoFi’s management will continue to lead the combined company.

As part of the merger, two new directors, Harvey Schwartz, former president and co-chief operating officer of Goldman Sachs  (GS) – Get Report, and Dick Costolo, former Twitter  (TWTR) – Get Report CEO, joined SoFi’s board.

“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 a statement. 

Social Finance announced the reverse merger in January. SoFi’s backers include investment titans SoftBank SFTBY and the investor Peter Thiel, co-founder of PayPal  (PYPL) – Get Report and Palantir  (PLTR) – Get Report, according to PitchBook.

In March, Palihapitiya, chairman of Virgin Galactic  (SPCE) – Get Report, sold his personal stake in the space-travel company for about $213 million, according to regulatory filings.

The investor Richard Branson’s Virgin Galactic went public by merging with Palhapitiya’s Social Capital Hedosophia in a 2019 deal valued at $1.3 billion.