SoFi Files $1 Billion Shelf Registration for Several Classes of Securities
If approved, the company can go to market at various times, as needed
Fintech powerhouse SoFi (US:SOFI) filed a July 15 report with the US Securities and Exchange Commission registering to sell up to one billion dollars of financial instruments in the future.
The filing is officially called a shelf registration in Wall Street’s vernacular and an S3 filing.
Once registered, the shelf offering allows SoFi to sell the securities with preapproval, freeing the firm to act without delay should its board decide to raise capital.
“We may, from time to time,” the company filing said, “ offer and sell, in one or more series or classes, up to $1.00 billion in aggregate principal amount of our common stock, preferred stock, debt securities, warrants and/or units, in any combination, together or separately, in one or more offerings in amounts at prices and on the terms that we will determine at the time of the offering and which will be set forth in the applicable prospectus supplement and any related free writing prospectus.‘
It said it would use proceeds from any securities sales to fund general corporate purposes, working capital, acquisitions, and debt retirement.
SoFi sports a $6.00 billion market cap.
Currently, the company’s board is authorized to have up to 3.0 billion shares of voting common stock, 100 million shares each of nonvoting common stock, preferred stock, and redeemable preferred stock.
On June 30, 2022, SoFi had 922.1 million shares of SoFi Technologies voting common stock outstanding and about 32 million shares of Series 1 Preferred Stock outstanding.
Mizuho published the most recent available SoFi research on July 7, rating its shares a buy and assigning a $7 a share target through the next 12 months.
SoFi's had a wild year, rising 22% in May. In April, the shares took a 35% drubbing after guiding lower and a delayed resumption of student loan repayments until later this year.