SoFi launches platform for companies to manage equity programs, including IPOs
SoFi Technologies has launched DSP2.0, a digital platform for managing equity programs, in partnership with PrimaryBid Technologies. This platform allows companies to allocate shares to specific groups, enhancing flexibility in capital raising. The launch coincides with a potential rebound in IPOs as the Federal Reserve eases policies, which is expected to boost capital market activity. SoFi's stock fell 0.5% in premarket trading following the announcement.
- SoFi Technologies (NASDAQ:SOFI), in partnership with PrimaryBid Technologies, rolled out a digital platform that streamlines equity program management for companies seeking to raise capital in the U.S., the digital financial services company said on Wednesday.
- DSP2.0, an advanced Directed Share Platform("DSP"), allows companies to allocate a portion of their share offerings to specific people or groups, such as employees or customers. Previous DSPs often required manual processing and don't integrate well with other systems, SoFi (SOFI) said.
- The DSP2.0 launch comes as initial public offerings are poised to rebound after the Federal Reserve started its policy-easing path. The cheaper cost of money is expected to boost capital market activity and investing in equities, thus reviving IPOs.
- The new product "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," the company said.
- SoFi (SOFI) stock dipped 0.5% in Wednesday premarket trading.