New Platform Enables Companies to Expand
Participation to Individual Investors in Public Offerings
SoFi Technologies, Inc. (NASDAQ: SOFI), a member-centric,
one-stop shop for digital financial services that helps members
borrow, save, spend, invest and protect their money, and PrimaryBid
Technologies Inc., a leading capital markets fintech firm, today
announced the launch of DSP2.0, an advanced Directed Share Platform
(DSP) that offers a modern and streamlined approach to equity
program management for companies looking to raise capital in the
U.S.
DSPs allow companies to allocate a portion of their share
offerings to specific individuals or groups such as employees or
customers. However, since these solutions often require manual
processing and don’t integrate well with other systems, they’re
expensive and time-intensive to operate and limit investor
participation to a select few.
With a potential rebound for the Initial Public Offering (IPO)
market in 2025, SoFi’s offering brings equity program management,
IPO, and follow-on offering processes into the digital age. It also
gives issuers enhanced flexibility in raising capital by enabling
them to involve non-institutional investor groups at scale.
SoFi’s DSP offers a cohesive investor experience, automations to
minimize manual back-office processing, and expanded integrations
with modern marketing analytics tools.
“For decades, companies have wanted to offer the opportunity to
participate in their IPOs to the employees, partners, customers,
and others who helped them grow,” said Anthony Noto, CEO of SoFi.
“Unfortunately, traditional DSPs often have high account minimum
requirements, carry significant costs to companies, and lack
benefits to underwriters, limiting their appeal. SoFi now offers
companies going public a turnkey, 100% digital way to offer IPO
shares to employees and other people who helped build their
business, and whomever else they want to direct the shares to,
whether it’s to 10 or 10,000 people. People can open an account
from a smartphone in seconds, transfer money seamlessly, and stay
informed throughout the IPO process – with no costs or deposit
requirements. At SoFi, we continue to provide Main Street investors
access to products like alternative investments and IPOs, which
have historically been reserved for high net worth individuals,
helping more of our members get their money right.”
“Companies want intelligent, targeted investor inclusion at IPO
to enfranchise those people who matter to their long-term success,”
said Anand Sambasivan, CEO of PrimaryBid. “Until now, they've
lacked tools to deliver this at scale with meaningful data, a
problem PrimaryBid is solving globally. This solution for the U.S.
market, combining SoFi and PrimaryBid's technologies, ensures
regulatory compliance while removing the administrative burden from
issuers and advisors when running a DSP. SoFi’s DSP2.0 lets
companies shape their offer around strategic needs, not technical
limitations.”
“It's vital to see innovation in the ways companies engage
stakeholders when going public, and the market will welcome new
technologies that modernize the IPO process as policymakers look to
broaden investor participation,” said John Tuttle, former Vice
Chairman for NYSE Group and expert on U.S. capital markets policy.
“These advancements can strengthen our public markets and support
the next generation of great American companies.”
For more information, please contact dsp@sofi.org.
About SoFi Technologies
SoFi (NASDAQ: SOFI) is a member-centric, one-stop shop for
digital financial services on a mission to help people achieve
financial independence to realize their ambitions. The company’s
full suite of financial products and services helps more than 8.8
million SoFi members borrow, save, spend, invest, and protect their
money better by giving them fast access to the tools they need to
get their money right, all in one app. SoFi also equips members
with the resources they need to get ahead – like credentialed
financial planners, exclusive experiences and events, and a
thriving community – on their path to financial independence.
SoFi innovates across three business segments: Lending,
Financial Services – which includes SoFi Checking and Savings, SoFi
Invest, SoFi Credit Card, SoFi Protect, and SoFi Insights – and
Technology Platform, which offers the only end-to-end vertically
integrated financial technology stack. SoFi Bank, N.A., an
affiliate of SoFi, is a nationally chartered bank, regulated by the
OCC and FDIC and SoFi is a bank holding company regulated by the
Federal Reserve. The company is also the naming rights partner of
SoFi Stadium, home of the Los Angeles Chargers and the Los Angeles
Rams. For more information, visit SoFi.com or download our iOS and
Android apps.
About PrimaryBid
PrimaryBid is a leading fintech firm. We build advanced retail
capital-raising solutions for regulated financial institutions,
enabling smart investor inclusion in public and private offerings
globally. Our SaaS platform facilitates efficient investor access
in IPOs, follow-ons, block sales, and corporate and government
bonds, and transforms retail investor participation into a
systematic and data-driven component of capital raising.
PrimaryBid has facilitated over 350 transactions for companies
ranging from large-cap to SMEs across the UK, EU and U.S. Our
technology ensures compliance while broadening access to regulated
markets, allowing companies to include their most committed
stakeholders in their capital journeys.
A partner to SoFi Technologies, London Stock Exchange Group and
Euronext, PrimaryBid is backed by leading financial institutions
and venture capital firms, including SoftBank, London Stock
Exchange Group, Fidelity, Molten Ventures, OMERS Ventures, Motive
Partners, Outward Ventures and Pentech.
Disclosures:
- Investing in an Initial Public Offering (IPO) involves
substantial risk, including the risk of loss. Further, there are a
variety of risk factors to consider when investing in an IPO,
including but not limited to, unproven management, significant
debt, and lack of operating history. For a comprehensive discussion
of these risks please refer to SoFi Securities’ IPO Risk Disclosure
Statement. This should not be considered a recommendation to
participate in IPOs and investors should carefully read the
offering prospectus to determine whether an offering is consistent
with their investment objectives, risk tolerance, and financial
situation. New offerings generally have high demand and there are a
limited number of shares available for distribution to
participants. Many customers may not be allocated shares and share
allocations may be significantly smaller than the shares requested
in the customer’s initial offer (Indication of Interest). For more
information on the allocation process please visit IPO Allocation.
This information should not be construed as a recommendation to
buy, sell, or hold any security, nor is a recommendation or
endorsement of any investment strategy.
- SoFi Invest refers to the two investment and trading platforms
operated by Social Finance, LLC and its affiliates (described
below). Individual customer accounts may be subject to the terms
applicable to one or more of the platforms below.
- 1) Automated Investing and advisory services are provided by
SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi
Wealth“). Brokerage services are provided to SoFi Wealth LLC by
SoFi Securities LLC.
- 2) Active Investing and brokerage services are provided by SoFi
Securities LLC, Member FINRA(www.finra.org)/SIPC(www.sipc.org).
Clearing and custody of all securities are provided by APEX
Clearing Corporation.
For additional disclosures related to the
SoFi Invest platforms described above, including state licensure of
SoFi Digital Assets, LLC, please visit SoFi.com/legal. Neither the
Investment Advisor Representatives of SoFi Wealth, nor the
Registered Representatives of SoFi Securities are compensated for
the sale of any product or service sold through any SoFi Invest
platform.
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY
LOSE VALUE
- PrimaryBid Technologies Inc (“PrimaryBid”) solely acts as a
communication services provider to broker-dealers in relation to
securities offerings. PrimaryBid is not itself a broker-dealer and
it does not itself effect securities offerings.
SOFI-F
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version on businesswire.com: https://www.businesswire.com/news/home/20241002730071/en/
For SoFi: Meghan Brown | pr@sofi.org For PrimaryBid: Mike
Coombes | mike.coombes@primarybid.com
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