By Dhirendra Tripathi
Investing.com – SoFi Technologies stock (NASDAQ:SOFI) surged 14% Wednesday after the fintech firm got regulatory approvals to become a national bank.
The shares touched a year’s low of $12.02 Tuesday and were bouncing after the Office of the Comptroller of the Currency and the Federal Reserve have approved its applications to become a bank holding company through its proposed acquisition of Golden Pacific Bancorp.
The stock touched a high of $28.26 in February and have more than halved since.
SoFi expects the acquisition to close in February, and operate its bank subsidiary as SoFi Bank, National Association.
The company plans to contribute $750 million in capital and pursue its national, digital business plan while maintaining GPB’s community bank business and footprint.
For the year that ended December, the company expects adjusted net revenue of $980 million and adjusted earnings before interest, taxes, depreciation and amortization of $27 million.
SoFi began to be traded on June 1 after its merger with blank-check company Social Capital Hedosophia Holdings V. It offers home and auto loans, stock and cryptocurrency trading and wealth management services.