By Emily Bary
Palihapitiya was looking to 'build up some cash reserves and fund several new investments'
Shares of SoFi Technologies Inc. were off 1.3% in premarket trading Friday after Social Capital Chief Executive Chamath Palihapitiya said that he sold roughly 15% of his stake in SoFi "to build up some cash reserves and fund several new investments."
Those investments include Mitra Chem, a battery-production company; Spectral, a credit-scoring company; and Syndica, a blockchain infrastructure company, Palihapitiya disclosed in a letter that he posted to Twitter Thursday afternoon. Palihapitiya also anticipates that he will add to his public investment in Clover Health through that company's primary offering.
"We remain a significant investor in SoFi (retaining 85% of our original stake and are excited about their path ahead," he said in the Twitter letter. SoFi (SOFI)merged with Social Capital Hedosophia Holdings Corp. V, a special-purpose acquisition company, in the process of going public in June.
SoFi's stock is on pace to decline for the fourth straight day if its premarket losses carry through to the close.
The financial-technology company announced late Monday that some selling shareholders including SoftBank Group Corp. and Silver Lake Partners would be conducting a secondary offering of 50 million shares. SoFi disclosed in a Thursday afternoon filing that the secondary offering was complete.
SoFi did not raise any money through the secondary offering.
Shares of SoFi are up 48.8% over a three-month span as the S&P 500 has risen 6.8%.
(END) Dow Jones Newswires
November 19, 2021 07:20 ET (12:20 GMT)
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