How do I participate in an IPO?
The most up-to-date list of IPO offerings will be available under ‘IPO Investing’ in the Invest tab of the SoFi app. Once they’re available, eligible members can get started by selecting an IPO. Then you’ll need to enter your indication of interest, which lets us know how many shares/units you’re interested in buying. Indications of interest are not considered binding orders because they are made before the prospectus is deemed effective by the SEC. An indication of interest is similar to making a reservation – you are holding your place in line and will be contacted by SoFi to confirm your intent once the deal is live and firm orders can be received. SoFi will alert you when it’s time to confirm your buy order. You will only have a short period of time to confirm your buy order so make sure to do so as soon as possible.
Note: eligible members are able to participate in multiple IPOs, but can only select one at a time as each IPO is unique and carries its own terms, conditions, and risks.
Who is eligible to participate in an IPO at SoFi?
SoFi Invest members with at least $3,000 assets across all SoFi Invest accounts are eligible to participate.
Money in your SoFi Money® cash management account is separate from money in your SoFi Invest accounts. If you have SoFi Money, you can instantly transfer up to $50,000 to a SoFi Active Invest account here.
SoFi Invest provides $5,000 of instant funding for external accounts and $50,000 for SoFi Money accounts. If you would like to purchase greater than $5,000/$50,000 from the respective linked accounts, funds must settle before the order date.
What is the SoFi IPO Flipping policy?
Members are able to sell securities obtained during an IPO whenever they would like. SoFi does not restrict the sale of securities on the secondary market. However, if a members sells within the first 30 calendar days post-IPO, that member will be limited in their ability to participate in future IPOs through SoFi for a defined period of time as outlined below:
Members that have obtained shares/units of an IPO through SoFi and sell within the first 30 days post-IPO are considered “flippers” and may be prevented from participating in future IPOs for 180 days upon a first violation, 365 days upon a second violation, and permanently in the event of a third violation.
In addition, SoFi may charge a fee for the sale of securities obtained through the IPO process if the sale takes place within the first 120 days post-IPO. This fee will step down for each subsequent sale that takes place within the 120 day window.
How does SoFi allocate shares/units?
SoFi takes a number of factors into consideration when determining how to allocate shares/units to members. Specifically, SoFi will look at the size of a member’s order request and the total account value that a member has on the SoFi Invest platform. SoFi will also consider a member’s prior participation in IPOs on SoFi’s platform and whether or not that member has previously violated SoFi’s IPO Flipping Policy. Importantly, each IPO transaction is unique and carries its own set of terms, opportunities, and risks. Therefore, SoFi’s allocation determination will be made on a deal-by-deal basis, irrespective of whether or not a member is placing orders for multiple deals at the same time.
Why do I need to confirm my indication of interest?
As referenced in the FAQ “What is an indication of interest?”, an IOI is not a binding order because the prospectus has not yet been finalized. Binding orders may only be placed once the registration process concludes and the prospectus is finalized. Therefore, if you placed a non-binding indication of interest you will need to confirm your intent to proceed with the purchase now that you have access to the final terms of the deal, as outlined in the final prospectus, which can be found under “IPO investing’ in the Invest tab of the SoFi app. Members who don’t confirm their indications of interest are not eligible to receive an allocation of shares.
Please note, even though you confirm your order, you are not guaranteed an allocation of shares/units. Please see the FAQ “What happens if a deal is oversubscribed?” for more information.
How do I find out about new issues available through SoFi?
As soon as there are new IPO offerings available, you can find the most up-to-date list, as well as other news and information, under ‘IPO investing’ in the Invest tab of the SoFi mobile app. Also, make sure your email and notification alerts are enabled so you can stay in the know!
