SoFi lands a Wall Street internship
NEW YORK, June 15 (Reuters Breakingviews) – SoFi Technologies’ (SOFI.O) four new equity underwriting gigs reflect a convenient connection. The online finance company’s shares only started trading on June 1 after the completion of a merger with a special-purpose acquisition company. Just a day later, it was listed as co-manager on a series of new healthcare-focused SPAC offerings jointly launched by prolific blank-check writer Chamath Palihapitiya.
Like getting internships, sometimes it’s about who you know. The SPAC that merged with SoFi, effectively taking it public, was one of Palihapitiya’s, too. As part of its underwriting gig in the four planned $200 million initial public offerings, up to 5% of each SPAC’s shares may go to retail investors through SoFi’s online brokerage, according to regulatory filings.
The mentor for the 10-year-old fintech will be Morgan Stanley (MS.N), the IPOs’ sole bookrunning manager. The Wall Street firm is itself debuting as the top bank for Palihapitiya, who has relied on Credit Suisse (CSGN.S) for six previous blank-check floats, according to data from SPAC Research. Everyone has to start somewhere. (By Richard Beales)
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