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SoFi's expected $30B IPO adds fuel to the Renren fire

By Benzinga
FinTech

rsz_benzinga_main money dollar Back in March, Benzinga covered the intrinsic value of fintech investments made by fading Chinese social media company Renren Inc RENN 0.85%. Among Renren's many investments, its approximate 25 percent stake in SoFi looked to be the most promising, as the company was looking to IPO at around $3.5 billion. On Tuesday, Business Insider's Jonathan Marino said SoFi CEO Michael Cagney was now looking for a $30 billion dollar IPO. Cagney cited Dodd-Frank Wall Street Reform and Consumer Protection Act as the boost that accelerated its expected IPO valuation 10 times as much as what had been reported in March. One might be led to believe that investors in Renren would be ecstatic regarding this news. However, management led by Renren CEO Joseph Chen is looking to take the company private at $4.20; Shares traded recently at $3.50.

Laughable Offer

Aptus Capital's John Romero told Benzinga, "If and when SoFi reaches a $30 billion market cap, this translates into $17 for RENN which is an asymmetrical return from its present share price of $3.50. Knowing SoFi's long-term objective just underscores how laughable the non binding offer of $4.20 is from present management." Read more at Benzinga
Photo: Alexey Krasavin

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