KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Public Offering Triggers Sell-Off
SoFi Technologies (SOFI) shares slid over 8% in after-hours trading Tuesday after the company announced a $1.5 billion public offering of common stock. The deal also includes a 30-day option for underwriters to buy an additional 15% of shares, signaling potential dilution for existing shareholders.
Strong Quarter Overshadowed
The sell-off came just hours after SoFi reported better-than-expected Q2 earnings and raised its full-year outlook. Key highlights include:
Revenue up 44% YoY
Fee-based revenue surged 72%
Members grew 34% to 11.7 million
2025 revenue guidance raised to $3.38 billion
2025 EPS forecast increased to $0.31
SoFi ended the quarter with $2.12 billion in cash, underscoring its solid balance sheet.
Why Investors Reacted Bearishly
Despite the strong fundamentals, the announcement of a large share sale often pressures stock prices due to concerns about dilution and timing. Investors may also be questioning why SoFi is raising capital so soon after hitting 52-week highs earlier in the day at $25.11.
What to Watch Next
Investors will focus on:
How SoFi plans to deploy the $1.5 billion in proceeds
Whether the capital raise accelerates growth in lending, technology, or new business verticals
Management’s ability to maintain momentum with membership and revenue growth
Bottom Line
SoFi’s Q2 results show strong operational performance, but the stock’s after-hours drop highlights investor sensitivity to capital raises. If management executes on growth plans with the new funds, this dip could present a buying opportunity for long-term investors looking to ride SoFi’s expansion story.
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