SoFi, a top Fintech that will go public via a SPAC, has announced that account holders may gain access to shares of companies completing an initial public offering (IPO).
In an IPO, shares are typically sold to institutions at a set price. These firms then sell them on the open market – hopefully at a price far and above the price at which they were purchased. Many recent IPOs have experienced a significant pop once the shares start to trade. For retail investors, this means they can get in at the IPO price and perhaps benefit from any gain.
In a blog post, SoFi said they will soon be offering certain users to access this feature.
“At SoFi, we feel strongly in breaking down the barriers to investing, and giving even more people access to the financial tools to realize their ambitions and achieve financial independence. Access to primary offerings through IPO Investing is our next huge step in that direction, and we’re excited to see what you think of this unique feature. We anticipate offering several securities on the new platform in the coming months.”
SoFi stated that this feature will be available to anyone who opens or has a SoFi Active Invest account and has at least $3,000 in total account value across all of SoFi Invest.
SoFi is not the only platform that offers access to IPO shares as traditional brokerages frequently do the same – if the brokerage has negotiated with bankers running the deal.
