SoFi Stock Falls. It’s Planning to Sell $1.5 Billion of Common Shares.

The fintech plans to use the proceeds for general corporate purposes. (GabBY Jones/BLOOMBERG)

Key Points

• SoFi Technologies’ shares fell following an announcement of a $1.5 billion common stock offering.
• The financial technology company intends to use the offering’s net proceeds for general corporate purposes and growth opportunities.
• SoFi’s shares have increased 92% this year and 89% over the past 12 months.

Shares of digital financial services platform SoFi Technologies dropped more than 7% after it announced an offering of $1.5 billion in shares of its common stock.

Shares were trading below $28 after closing up 1.8% at $29.60 on Thursday. SoFi shares are up 92% this year, and up 89% over the past 12 months.

The San Francisco-based fintech said in a regulatory filing that it planned to use the net proceeds from the offering for general corporate purposes, including enhancing its capital position, increasing optionality, enabling further efficiency of its capital management, and funding incremental growth and business opportunities.

Goldman Sachs is leading the underwriting, along with BofA Securities, Citigroup Global Markets, Deutsche Bank Securities, and Mizuho Securities.

Barron’s reported earlier this week that SoFi was among the companies that could be added to the S&P 500 when the benchmark index undergoes its quarterly rebalancing this month, based on changes in their shares outstanding. The newest additions will be announced on Friday afternoon.

SoFi was mentioned on a list drawn up by KBW analyst Shreyank Gandhi of the largest companies not already in the S&P 500 .

Write to Janet H. Cho at janet.cho@dowjones.com