SoFi follows Robinhood to give access to SPACs
SoFi Technologies, which went public by merging with IPOE, is giving retail investors a chance to invest in SPACs. Starting Wednesday, SoFi (ticker: SOFI), the online personal-finance company, will allow customers to buy shares of four biotech SPACs–Social Capital Suvretta Holdings Corp I, II, III and IV–from venture capitalist Chamath Palihapitiya. Morgan Stanley (MS) and SoFi are listed as underwriters on the four blank check companies, which have yet to go public. SoFi customers can buy up to 5% of shares in each of the deals, a prospectus said.
SoFi investors can buy shares in the SPACs at $10 each, before the blank check companies go public. To invest, SoFi customers need an Active Invest account, and they must have a minimum of $3,000 spread across SoFi Invest accounts, according to the firm’s website.
SoFi is the latest firm to give retail investors access to lucrative IPOs. In May, Robinhood Markets began offering shares of new issues to retail investors. Robinhood customers were able to buy stock in FIGS (FIGS), the Santa Monica, Calif. firm that sells fashionable medical scrubs, before it began trading. Shares of FIGS rose 36% in its market debut last month.Read more